Attachment_5_-_PBGC_Directive_FM_15-01_Requisition _Acquisition_and_Payment_for_Goods_and_Services.pdf

Pension Benefit Guaranty Corporation

Directive Subject: Requisition, Acquisition and Payment for Goods and Services

Directive Number: FM 15-1

Effective Date: 05/30/14 Originator: Procurement Dept.

Alice Maroni Chief Management Officer

1. PURPOSE: This Order establishes uniform policies and procedures for acquisition of goods and services by the Pension Benefit Guaranty Corporation (PBGC).

2. EFFECTIVE DATE: This directive supersedes FM 15-1 dated 6/14/2013. The following changes were made:

a. Changed language in Section 9 and removed old Section 10 to avoid restating existing FAR guidance regarding Section 508 Compliance.

b. Section 16 - Length of Contracts was added documenting certain circumstances under which a contract may exceed 5 years in length and the process that must be followed.

c. All references to the Facilities and Services Department (FASD) were updated with the new department title of Workplace Solutions Department (WSD).

d. All references to the Budget and Organizational Performance Department (BOPD) were updated with the new department title of Budget Department (BD).

e. On March 27, 2015, administrative changes were made relating to the delegation of the PBGC Director’s duties in the event of PBGC Director’s absence.

3. SCOPE: This Order applies to all PBGC employees with the exception of the Office of the Inspector General (OIG) which has its own statutory authority.

4. AUTHORITIES:

a. The Federal Acquisition Regulation (FAR)

b. 41 U.S.C. 414 – Federal Procurement Policy Act

c. 29 U.S.C. 794 – Rehabilitation Act

d. PBGC Board of Directors Resolution 2009-06

5. BACKGROUND: This Order provides standardized processes for the requisition, acquisition, and payment for goods and services at PBGC.

6. DEFINITIONS:

a. Contracting Officer. An employee, appointed by the Head of the Contracting

Activity (HCA), with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. Contracting Officers may legally bind the Government only to the extent of their delegated authority.

b. Contracting Officer’s Representative (COR). An employee designated in writing by a Contracting Officer to represent the Contracting Officer in the administration of a specific contract.

c. Labor-Hour Contract. A contract pricing method that provides for acquiring supplies or services on the basis of direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, and profit.

d. Major Systems. A combination of elements that will function together to produce the capabilities required to fulfill a mission need. The elements may include hardware, equipment, software, or any combination thereof, but exclude construction or other improvements to real property.

e. Micro-Purchase Threshold. A maximum dollar threshold established by the FAR, under which certain acquisition rules do not apply.

f. Ratification. The act, by an official who has the authority to do so, of approving an unauthorized commitment.

g. Requiring Activity. The department, division, branch, or office within the PBGC generating the requirement.

h. Simplified Acquisition Threshold (SAT). A maximum dollar threshold established by the FAR, under which federal agencies may use simplified acquisition procedures as established in FAR Part 13.

i. Technical Evaluation Panel (TEP). A panel of federal employees selected to evaluate proposals received in response to a specific solicitation.

j. Time-and-Materials Contract. A contract pricing method that is similar to a labor-hour contract, but also reimburses the contract for the actual cost of materials used in performance of the contract.

k. Unauthorized Commitment. An unauthorized commitment is an agreement that is not binding solely because the Government representative who made it lacked the authority to enter into that agreement on behalf of the Government.

7. POLICY:

a. It is PBGC’s policy to deliver on a timely basis the best value product or service to the agency, while maintaining the public’s trust and fulfilling public policy objectives. Participants in the acquisition process should work together as a team and should be empowered to make decisions within their area of responsibility.

Procurement actions will be documented in all instances, will be made only by PBGC officials who have procurement authority, and will be carried out in accordance with the requirements of FAR, this Order, and procedures established by the Procurement Department (PD).

b. The FAR governs the PBGC’s procurement activities. Nothing in this Order is intended or shall be construed as detracting from, limiting, precluding the use of, or otherwise compromising any right, power, or authority available to the PBGC under the FAR or other law, rule, or regulation.

c. Pursuant to the PBGC Board of Directors Resolution 2009-06, the Director of the PBGC, including anyone acting in that position, shall not participate personally and substantially in the procurement of goods and services for the Corporation, as defined by FAR 3.104-1, including but not limited to serving on Technical Evaluation Panels (TEPs) or source selection boards, making or reviewing contract awards, or drafting solicitation materials or evaluation criteria.

8. DELEGATIONS OF AUTHORITY:

a. The Chief Management Officer (CMO) is the delegated authority for the direction of the contracting and procurement program of the PBGC, which includes authority to execute, administer, modify, or terminate contracts needed to obtain the goods and services required by the PBGC. The CMO has delegated this authority to the Procurement Director.

b. The Chief Information Officer (CIO) serves as the PBGC’s official Information Technology (IT) service and product approver in accordance with the Clinger– Cohen Act 1996, established by Congress to reform and improve the way Federal agencies acquire and manage IT resources. The law required each agency head to establish clear accountability for IT management activities by appointing an agency CIO with the visibility and management responsibilities necessary to carry out the specific provisions of the Act. The CIO plays a critical leadership role in driving reforms to help control system development risks; better manage technology spending; and succeed in achieving real, measurable improvements in agency performance. The CIO may re-delegate portions of his/her authority.

c. The PD Director serves as the PBGC’s Chief Acquisition Officer, Senior Procurement Executive, and Head of the Contracting Activity in accordance with

Section 16 of the Office of Federal Procurement Policy Act (41 U.S.C. 414). The PD Director may re-delegate portions of his/her authority.

d. Department Directors are delegated authority to initiate the requisition of goods and/or services for amounts below $500,000 per requisition without approval by the CMO. Department Directors may re-delegate this authority at their discretion. A copy of the letter of delegation shall be forwarded to the Workplace Solutions Department (WSD) in accordance with the PBGC Directive GA-05-5, The PBGC Delegation of Authority System. Requisitions equal to or greater than $500,000 must be approved by the CMO. Department Directors are required to ensure that all requisitions for IT products and/or services be approved by the CIO or his/her delegated authority. Department Directors are also required to ensure that all requisitions for office equipment, televisions, furniture, or building services (including construction) be approved by the WSD Director.

e. Government Purchase Cardholders will have authority delegated to them to procure goods and services in amounts up to $3,000 per transaction. Each cardholder’s account has a monthly purchase limit typically set at $10,000. Higher transaction and/or monthly limits may be approved on a case by case basis by the PD Director.

All IT products and/or services must be approved by the CIO or his/her delegated authority prior to purchase.

9. RESPONSIBILITIES:

a. Chief Management Officer (CMO)

(1) Approves requisitions over $500,000. Approval in all instances is contingent on the availability of funds.

b. Director, Procurement Department (“PD Director”)

(1) Provides written guidance to the Corporation for all procurement procedures not specifically covered by this Order.

(2) Establishes an Acquisition Planning Program for all acquisitions above the

SAT.

(3) Appoints Contracting Officers.

(4) Establishes and conducts a Contract Administration program, including the utilization of CORs, to assure successful contractor performance.

(5) Maintains the official COR/contract listing for the Corporation; and establishes and conducts an ongoing program to maintain communications with and provide guidance and training to CORs.

(6) Maintains the official listing of active government purchase cardholders, and establishes and conducts an ongoing program to maintain communications with and provide guidance and training to card holders.

(7) Administers program to track and provide information on the Corporation’s procurement activities through Federal Procurement Data System –Next Generation (FPDS-NG) and supports the Open Government

Initiative.

(8) Retains signature authority for Determination and Findings (D&Fs) for acquiring advisory and assistance services by contract.

(9) Ensures that the Corporation is compliant with all federally mandated acquisition programs and initiatives.

(10) Prepares written notification of liability for disapproved ratifications for

CMO’s approval.

(11) Approves Labor Hour or Time & Material contracts exceeding the SAT.

(12) Approves contract periods in excess of the 5-yr limit.

c. PD Policy Chief

(1) Serves as the designated PBGC Competition Advocate in accordance with

FAR Subpart 6.5.

d. Contracting Officers

(1) Perform all duties and responsibilities delineated in FAR 1.6.

(2) Act as business advisors to the requiring activity.

(3) Enter into, administer, and/or terminate contracts and make related determinations and findings.

(4) Prepare D&Fs for contracts in excess of the 5-yr limit for PD Director’s approval.

(5) Designate and appoint CORs to assist with contract management and oversight.

e. Director of the Office of Small and Disadvantaged Business Utilization

(1) Effectively implements the small business program within the PBGC, including achieving program goals.

(2) Ensures that contracting and technical personnel maintain knowledge of small business program requirements and takes all reasonable action to increase small business participation.

(3) Reviews and concur on PBGC Form 617, Small Business Acquisition Review, and performs the duties outlined in FAR Part 19.

f. Financial Operations Department (FOD)/General Accounting Branch (GAB)

(1) Reviews all Procurement Requisitions for the availability of funds.

(2) Verifies appropriate approval(s) and object class use.

(3) Establishes procedures for monthly reconciliation of invoices.

g. Chief Information Officer (CIO) or designee (Deputy CIO, The Information Technology & Business Modernization Department [ITBMD] Director, or Information Technology Infrastructure Operations Department [ITIOD] Director).

(1) Approves all purchases for information technology (IT) hardware, software, data communications or other peripheral equipment, and IT system development or installation services.

(2) Establishes and maintains an Information Technology Solutions Life Cycle Methodology (ITSLCM) to manage IT acquisitions.

(3) Ensure that IT purchases are in compliance with Section 508 of the Rehabilitation Act, as implemented by FAR 39.2, and the appropriate Federal accessibility standards.

h. Director of Workplace Solutions Department (WSD).

(1) Approves all requisitions for office equipment, televisions, furniture, and building services (including construction).

(2) Conducts a program to control the receipt of tangible goods by the PBGC.

(3) Ensures that physical accessibility requirements are in compliance with

Section 508 of the Rehabilitation Act and the appropriate Federal accessibility standards.

i. Office of General Counsel (OGC).

(1) Provides coordination on acquisition actions as follows:

Pre/Post Award

Coordination Type Dollar Value When

Solicitations & Contracts > $200,000 Prior to release & prior to award

Contract Formation

Justification and Approvals (J&As) for other than full and open competition

>SAT Prior to approval by Contracting Officer

Agency and GAO Protests Any Amount Upon Receipt

Contract Modifications Any Amount Upon Receipt of novel or unusual issues, including novations and change of name agreements

Admin

Contract Modifications

50% of Total Original Contract Price

Prior to issuing modification (Ex. Contract with base year plus options = $8M, then OGC would review any modification when the total of all modifications exceeds $4M)

Audits Any Amount Prior to issuing a demand letter

Claims Any Amount

Receipt of Claim - within one business day Contracting Officer’s Final Decisions – two business days prior to issuance

Contract Terminations Any Amount Prior to Terminating for Default or Convenience

(2) Provides other advice and guidance during the procurement process when requested.

j. Department Directors

(1) Recommends employees from their respective department to the PD

Director to serve as CORs for contracts within their area of responsibility.

(2) Follows the PBGC requisition and obligating procedures in accordance with this Order and guidelines established by the PD and GAB, respectively.

(3) Ensures COR personnel are Federal Acquisition Certification-Contracting Officer’s Representative (FAC-COR) certified prior to appointment and complete the required continuous learning points (CLPs) to maintain certification.

k. CORs

(1) Carries out their responsibilities in accordance with this Order, the PBGC

Directive PM 25-5, Section 7, their letter of appointment, and the terms and conditions of the contract.

(2) Assists the Contracting Officer in the administration of the contract.

l. Originators of procurement requests

(1) Acts in accordance with the policies and procedures of this Order and those that may be established by the PD, Budget Department (BD), and the General Accounting Branch (GAB).

(2) Performs acquisition planning and conduct market research (see FAR Part

10) for all acquisitions in order to promote and provide for acquisition of commercial items (see FAR Part 12), and full and open competition (See FAR Part 6).

(3) For service contracts, complies with the PBGC Directive GA 15-4, Guidelines for Determining Whether to Use Contractors or Government Employees and Contracting with PBGC Retirees.

(4) Contacts the PD for instructions and guidance needed to prepare required supporting documentation.

(5) Completes Procurement Requisitions electronically, securing all required approvals and tracking the form’s progress through submission to the PD.

m. Office of Inspector General

(1) Conducts contract audits necessary in the award, administration, and closeout of PBGC contracts.

10. PROCUREMENT PROCEDURES:

a. Acquisition Planning. Acquisition planning should begin as soon as the agency need is identified, preferably well in advance of the fiscal year in which contract award or order placement is necessary. Funding should be requested in the congressional budget justification. Acquisition planning shall integrate the efforts of all personnel responsible for significant aspects of the acquisition. The purpose of this planning is to ensure that the PBGC meets its needs in the most effective, economical, and timely manner. An Advance Procurement Plan (APP) is required for all new procurements with an estimated contract value (including options) greater than the simplified acquisition threshold. The APP template may be found on the PD’s intranet site (http://intranet/finbudpur/procurement-acqplan.cfm).The Program Manager or COR must sign the APP and forward to the PD’s Acquisition Division Chief for concurrence before submitting to the requiring activity’s Department Director for approval. If requesting current year funding, an APP shall be prepared and approved prior to requesting funding from the Budget and Planning Integration Team (BPIT). Exercising an option under an existing contract is not considered a new procurement and does not require an APP. However, notification of intent to exercise an option should be communicated to the Administrative Contracting Officer at least 90 days prior to the expiration date of the current contract period of performance. Failure to do so could jeopardize the Government’s unilateral right to exercise the option.

b. Preparing Procurement Requisitions. Procurement Requisitions are generated and electronically routed through the PD’s requisition and contract writing system (currently ComprizonSuite). For access to the system, contact the PBGC OIT Service Desk. Guidance for creating requisitions may be found on the PD’s intranet site (https://comprizon.ent.pbgc.gov:4443/comprizon/servlet/Comprizon). For additional assistance, customers should contact the PD.

c. Documentation Approval and Routing.

(1) The originator secures departmental approval, to include approval by the

Budget Liaison Officer, of the requisition and its supporting documentation. Departmental approval should only occur when sufficient funds are available in the department’s budget for the requisition. Any supporting documentation must be electronically attached to the requisition when it goes through the signature/approval process.

(2) The originator must secure the following additional concurrences/approvals:

(a) Approval of the OIT Technical Review Board (TRB) is required for all new or changed technology prior to acquisition.

(b) Approval of WSD is required for all purchases for office equipment, televisions, furniture, and building services (including construction).

Evaluation criteria are available from WSD. WSD will complete its review within three business days, unless another time frame is mutually agreed upon.

(3) The originator forwards the requisition electronically to the GAB. The GAB will process the electronic form within two business days and submit it to the PD. In the event of insufficient funds, the GAB will return the requisition to the originating department for resolution.

d. Procurement Department Processing.

(1) The PD will assign each requisition to a contract specialist. Within one business day of being assigned the requisition, the contract specialist will notify the customer that the requisition has been assigned.

(2) The PD will communicate the status of all procurements by issuing a Procurement Status Chart weekly to the Executive Management Committee, Department Directors, CORs, and Program Managers.

(3) When a labor-hour contract must be re-competed, the contract specialist will meet with the requiring activity in order to evaluate whether the work has evolved to a point that it can be defined sufficiently to use a different type of contract.

(4) To protect and ensure the confidentiality of contractor technical and cost proposals, hard copies of the technical and cost proposals submitted by offerors may not be taken off of the PBGC premises without an exception being authorized by the PD Director. All contractor responses to Request for Proposals (RFPs) will be submitted electronically. The electronic version will allow TEPs to read and evaluate proposals outside of the PBGC without the risk associated with carrying them out of the building.

Tokens will allow secure access of the proposals from an alternate work sites. In the event of an extreme circumstance, if hard copies of the proposal are taken from the PBGC premises, a secure proposal bag may be used. The proposal bags are located in the PD, and may be signed out by TEPs during the evaluation phase of procurements.

(5) The PD will analyze procurement documents and contact the Office of the General Counsel (OGC) to resolve specific legal issues, as required.

(6) The PD will provide a copy of the contract to the COR, the department’s Budget Liaison Officer (BLO), the GAB, the BD, the contractor, and when supplies are ordered, WSD within one business day of contract award. PD will maintain the original document in the contract file.

(7) The PD will ensure that the contract file, including the original contract, all contract modifications, and all supporting documentation, is maintained electronically.

11. CONTRACT MODIFICATION PROCEDURES:

a. Contract Modification Documents. A proposed modification to an existing contract must include a statement from the COR to the PD as to why the modification is necessary and in the interests of the PBGC. If the change is to extend the period of performance or alter the terms and conditions of a contract, a statement of the facts and circumstances that require the change should be included. Modifications that go beyond the scope of the original contract are new procurements; however, an extension of an existing contract for a new fiscal year that merely exercises an option included in the original contract is not a new procurement.

b. Requisitions. If a proposed modification will increase or decrease the dollar value of the contract, a revised requisition for the amount must be submitted to the GAB for certification of funds availability. Requisition splitting for purposes of circumventing established dollar limitations is prohibited. Incrementally funded requisitions, based on continuing resolutions approved by Congress, are not a violation of dollar limitations. The GAB will forward approved requisitions to the PD or return the requisition to the originator when funds are not available or required signatures are missing. No proposed modification may be implemented without Contracting Officer signature. The PD will provide CORs, the GAB, the BD, and the contractor with copies of contract modifications within one business day of signing.

12. UNAUTHORIZED COMMITMENT:

a. When notified of an unauthorized commitment, the Contracting Officer will:

(1) Notify the originating employee’s Department Director in writing of the occurrence and request:

(a) Statement by individual describing circumstances;

(b) Explanation of why normal procurement procedures were not followed;

(c) Description of bona fide Government requirement necessitating the commitment;

(d) Description of government received benefits (Give value of benefit and other pertinent facts);

(e) All relevant documents (Include orders, invoices and other evidence);

(f) Comments of immediate supervisor of individual making unauthorized commitment;

(g) Description of attempts to resolve unauthorized commitment prior to requesting ratification (i.e. returning merchandise, individual paying from personal funds, etc.);

(h) Description of special remedial corrective action and/or disciplinary action taken (include a description of any administrative action to be taken under applicable personnel authority or explain why no disciplinary action was considered necessary); and

(i) Description of action taken to prevent recurrence of unauthorized act.

(2) Ensure that OGC is copied on the initial notification to the Department Director

b. Ratifications. The PD Director is the Ratifying Official and may approve a ratification of the unauthorized commitment.

(1) For approved ratifications, the Contracting Officer will notify the originator’s Department Director of the decision in writing.

(2) For disapproved ratifications, the PD Director will prepare a written Notification of Liability for the CMO to send to the Department Director and the affected federal employee. The Notification will describe:

(a) The reason(s) for the denial;

(b) The employee’s right to appeal the disapproval; and

(c) The Corporation’s plans for notifying the vendor if an appeal is not timely filed.

c. Appeal Procedure for a Notification of Liability. A federal employee held financially liable for his or her unauthorized commitment may appeal the decision within 30 calendar days from the date of the Notification of Liability Letter. The appeal must:

(1) Be in writing;

(2) Be submitted to the PBGC Director, or in the absence of the PBGC

Director, the CMO; and

(3) Contain all facts that the employee wishes to have considered, including new information not previously presented.

The Director may call upon any PBGC employee for any additional information or to clarify controversial points of the case. The Director will notify the concerned parties in writing of his/her decision within 15 business days from the date the appeal letter is received. An employee held financially liable may also appeal the decision through PBGC’s grievance procedures.

d. Payment of Unauthorized Commitment.

(1) Approval. If ratification of the purchase is approved, the requisition accompanying the request will be processed and a contract will be issued.

Existing invoice(s) will be certified for payment by the originating department and forwarded to the GAB for payment.

(2) Disapproval. If ratification of the purchase is not approved, the contractor invoice(s) will be returned to the contractor with a cover letter from the PD advising of the disapproval of ratification and that payment from the PBGC will not be forthcoming. A copy of the letter will be sent to the concerned employee and the GAB. The employee may be held liable for payment by the contractor.

13. BEST VALUE SOURCE SELECTION

a. Best value may be achieved by either a Tradeoff process or a Lowest Price Technically Acceptable (LPTA) process. The process used is a business decision based on multiple factors and made jointly by the customer and PD. In different types of acquisitions, the relative importance of cost or price may vary. For example, in acquisitions where the requirement is clearly definable and the risk of unsuccessful contract performance is minimal, cost or price may play a dominant role in source selection. The less definitive the requirement, the more development work required, or the greater the performance risk, the more technical or past performance considerations may play a dominant role in source selection made jointly by the customer and the PD.

(1) Tradeoff Process. Each proposal is evaluated using pre-established evaluation criteria, followed by a tradeoff analysis to determine best value.

The Tradeoff allows the Government to award to other than the lowest price offeror, or other than the highest technically rated offeror. TEP members will follow a structured process, evaluating each proposal independently, identifying strengths and weaknesses, assigning adjectival ratings to each evaluation factor, developing a consensus rating for each proposal, and, after a consensus rating is assigned to each proposal, perform a tradeoff analysis to determine the best value, if necessary.

For competitive procurements, when the Tradeoff process is utilized, a formal TEP shall be established for all procurements expected to exceed the Simplified Acquisition Threshold (SAT), major systems, and/or whenever determined necessary by the Contracting Officer. Whenever determined appropriate by the Procuring Contracting Officer, an automated source selection tool shall be used to maintain proper roles and responsibilities for the TEP members, and to maintain a documented, streamlined, and structured approach to the evaluation process. The automated source selection tool includes options that aid acquisition planning support, through documentation and proposal evaluation support;

acquisition management, through acquisition lifecycle and policy implementation; and program management support, through maintenance and base lining of acquisition milestones. Because of the importance that the selection of competent contractor support has on total mission success, it is PBGC policy that TEPs be comprised of more experienced employees. To ensure that TEPs have the proper depth and breadth of experience, the TEP shall consist of a minimum of three panel members and include grade levels as prescribed below:

Technical Evaluation Panel

Contract Value # of Members (minimum)

TEP Composition (minimum grade level)

SAT – $500K 3 (1) GS-12, (2) GS-13

>$500K - $1M 3 (2) GS-13, (1) GS-14

>$1M - $10M 3 (2) GS-14, (1) GS-15

>$10M 3 (1) GS-14, (2) GS-15

Whenever possible, one member of the TEP should be from a department other than the department initiating the procurement. Additional members, to the TEP minimum of three, may be grade GS-12 or higher.

Exceptions to the minimum grade requirements must be approved by the Director, PD. Each member shall have an equal vote. TEPs may also be supported by non-voting “experts” who are not involved in the evaluation of proposals, but simply advise the TEP on narrowly defined technical issues. The TEP shall issue a TEP report presenting the results of their evaluation to the Source Selection Authority.

(2) LPTA Process. Each proposal is evaluated using pre-established criteria to determine technical acceptability using a pass/fail approach. Of those proposals determined “technically acceptable,” low price determines best value. Award is made in the basis of the lowest evaluated price of proposals meeting or exceeding the acceptability standards for non-cost factors. When the LPTA process is utilized, a formal TEP shall not be required. The customer is responsible for identifying one or more technically qualified individuals to perform a technical evaluation of the proposals received. The technical evaluation shall identify those proposals that are “technically acceptable,” and those proposals that are “not technically acceptable.” For those proposals that are determined “not technically acceptable,” the evaluator(s) shall document clearly why the proposal was determined “not technically acceptable.”

b. When only one proposal is received for a requirement that was initially advertised as utilizing a “tradeoff” source selection, identifying strengths and weaknesses and rating the proposal as excellent, good, acceptable, marginal, or unacceptable serves no useful purpose. In this case the Contracting Officer may document the file as such, and use a pass/fail approach similar to the LPTA process to determine viability of the proposal for award.

14. PBGC GOVERNMENT PURCHASE CARD

a. The purchase card shall be the preferred method of procurement for the purpose of buying micro-purchase items for individual offices. Each employee receiving a purchase card will have a single purchase limit and a maximum monthly expenditure limit. This limit will be set by the PD in coordination with the BD.

b. Cardholders shall follow the procedures in the PBGC Purchase Card Manual, which may be found on the PD’s intranet site (the PD Customer Help Hyperlink http://intranet/finbudpur/procurement.cfm).

15. LABOR-HOUR OR TIME AND MATERIALS CONTRACTS

a. A written justification to enter into a labor-hour or time and materials contract, or into a hybrid contract including labor-hour or time and materials items, is required for all actions exceeding the SAT. The justification is prepared by the requiring activity, and submitted through the cognizant Department Director to the

Contracting Officer for approval by the PD Director. The justification shall address the following:

(1) Description of the services required;

(2) How these services have been procured in the past;

(3) Why a labor-hour or time and materials contract is in the best interests of the Government, to the exclusion of other contract types;

(4) How the services provided under this contract will be monitored;

(5) What performance standards and metrics will be included to ensure quality of service received;

(6) What steps can be taken in the future to create a more definite statement of the PBGC’s requirements to enable the PBGC to contract for the same services in the future using a contract type that places less risk of cost escalation on the government (e.g. firm-fixed price).

b. A sample labor-hour or time and materials justification can be found on the PD’s intranet site (the PD Customer Help Hyperlink http://intranet/finbudpur/procurement-acqplan.cfm).

16. LENGTH OF CONTRACTS:

FAR 17.204(e) states that “Unless otherwise approved in accordance with agency procedures, the total of the basic and option periods shall not exceed 5 years in the case of services, and the total of the basic and option quantities shall not exceed the requirement for 5 years in the case of supplies.”

The PD Director may approve contract periods of performance in excess of the 5-year limit, but not to exceed 10 years, in those instances where it can be clearly demonstrated to be in the best interest of the agency. In each instance a Determination & Findings (D&F) shall be prepared for approval by the PD Director. The D&F shall be prepared by the Contracting Officer and routed through the cognizant Department Director and Executive Management Committee (EMC) member for review and concurrence prior to being approved by the PD Director.