FAR Part 34 Flashcards
Major System Acquistion
Part 34
Major System Acquistion
Part 34 Major System Acquisition
Overview of FAR Part 34 - Major System Acquisition
Purpose: Establishes policies and procedures for the acquisition of major systems (FAR 34.000).
Key Sections:
34.1 Testing, Qualification, and Use of Industrial Resources Developed Under Title III,
Defense Production Act
34.2 Earned Value Management System
Part 34 Major System Acquisition
Subpart 34.1 - Testing, Qualification, and Use of Industrial Resources Developed Under Title III, Defense Production Act
Purpose:
Ensures proper testing and qualification of major systems (FAR 34.101).
Key Features
Requirements for rigorous testing and qualification of systems (FAR 34.102).
Use of industrial resources developed under Title III of the Defense Production Act (FAR 34.103).
Comprehensive testing protocols to ensure system reliability and performance (FAR 34.102(a)).
Procedures for qualification to verify compliance with specifications (FAR 34.102(b)).
Part 34 Major System Acquisition
Subpart 34.2 - Earned Value Management System (EVMS)
Purpose: Implements an EVMS for effective management of major system
acquisitions (FAR 34.201).
Key Features:
Use of EVMS to track performance, schedule, and cost objectives (FAR 34.202).
Requirements for integrating EVMS into the acquisition process (FAR 34.203).
Guidelines for implementing EVMS in major system acquisitions (FAR 34.204).
Specific requirements for contractors to use EVMS (FAR 34.205).
Part 34 Major System Acquisition
Summary and Importance of FAR Part 34
Key Points:
FAR Part 34 provides a structured approach to managing major system acquisitions.
Ensures rigorous testing and qualification of systems.
Implements EVMS for effective project management.
Supports the development and use of critical industrial resources.
FAR Part 34 Overview
34.1 Testing, Qualification and Use of industrial Resources Developed Under Title I, Defense Production Act
34.2 Earned Value Management System
FAR Part 34
Scope
Acquisition policies and procedures for use in acquiring major systems
Consistent with OMB
Circular Number A-109
Use of an Earned Value Management System, acquisition designated as major acquisitions
Consistent with OMB Circular Number A-11, part 7
FAR Part 34
Effective Competiton
market condition that exists when two or more
contractors, acting independently, actively contend for the Government’s business ensuring the Government will be offered the lowest cost or price alternative, or the best technical design meetings its requirements
FAR Part 34
Item of Supply in subpart 34-1
any individual part, component, subassembly, assembly, or subsystem integral to a major system, and other property which may be replaced during the service life of the system.
Includes spare parts and replenishment parts
Does not include packaging or labeling associated with shipment or identification of item
FAR Part 34
Policy
Acquire major systems in the most effective, economical, and timely manner
Promote innovation, and ful &open competition
Sustain effective competition between alternative system concepts and source
FAR Part 34
Competition
PM promotes full & open competition
Notice of the proposed acquisition is given the broadest and most effective circulation possible throughout the business, academic, and Government communities.
When feasible and possible, foreign contractors, technology, and equipment may be considered
Contracting officer times solicitation issuance and contact award to maintain continuity of concept development when transition from drawing concept to new contractor
Mission-orientated solicitation
Before solicitation, contracting officer provides advance notice of the acquisition through SAM.gov and widest selection of potential sources possible
Small and new firms
Government laboratories
Federally-funded research and development centers - Educational institutions
Not-for-profit organization
Foreign sources
Concept exploration contracts
Contracts performed during the concept exploration phase are for relatively short periods and at planned dollar levels
Refine the proposed concept and reduce technical uncertainties
Scope of work consistent with the Governments’ planned budget
Follow on contracts awarded as long as the concept approach remains promising, contractor progress is acceptable and economically practicable
Demonstration contracts
Provide contractor to submit priced proposals, totally funded by the government for full scale development
Contracting officer provides operational test conditions, performance criteria, life cycle cost factors, and other selection criteria for proposal preparation
34.1 Testing, Qualification and Use of industrial Resources Developed Under Title I, Defense Production Act
Full-scale development contracts provide for the contractors to submit priced proposals for production that are based on latest quantity, schedule, and logistics and other considerations used in making production decisions
Full production awarded fi agency head
- Reaffirms the mission need and program objectives; and
- Grants approval to proceed with production
Pay for any testing and qualifications required to incorporate industrial resources under Title III
Contractors forward requests ot contracting officer ot evalute and determine whether the Title Il industrial resource is being or potentially may be used
Contracting officer determines whether major systems in
production, remaining quantities to be acquired are sufficient to justify incurring the cost of testing and
qualifications
34.2 Earned Value Management System
May be required for other acquisitions
Offeror proposal a system that is not been determined to be in compliance with Electronic Industries Alliance Standard 748 (EIA-748) submit a plan for compliance with EVMS standard
When required, contracting officer determines adequacy
Integrated baseline reviews required
FAR PART 34. MAJOR
SYSTEM ACQUISITION
This part describes acquisition policies and procedures for the
use in acquiring major acquisition systems consistent with OMB circular number A-109.
In the use of the Earned Value Management system and acquisitions designated as major acquisitions consistent with OMB circular A-11, part 7. (FAR
FAR 34.001 DEFINITION
“Effective competition,” as used in this
part is a market condition that exists when two or more contractors, acting independently, actively contend for the government business in a manner that ensures that the government will be offer the lowest cost or price alternative or best technical design meeting its minimum needs.
FAR 34.002 POLICY
The policies of this part are designed to ensure that agencies acquire major systems in the most effective, economical, and timely manner to do this the agencies shall
- Promote innovation and full and open competition as required by FAR part 6 in the development of major systems concepts,
*expressing agency needs and major system acquisition program objectives in terms of the agency’s mission not in terms of specified systems to satisfy needs, and
- focusing agency resources and special management attention on activities conducted in the initial stage of major programs, and
- Sustain effective competition between alternative system concepts and sources for as long as it is beneficial.
As required by A-109, the agency head or designee shall establish written procedures that shall identify the key decision points of each major system acquisition and the agency officials responsible for making those decisions.
Major systems acquisitions, as determined by the agency head:
- are directed at and critical to fulfilling the agency mission needs;
- entail allocating relatively large resources for the particular agency; and
- warrant special management attention, including specific agency-head decisions.
FAR 34.004 ACQUISITION STRATEGY
FAR 34.004 identifies the
program manager as the responsible person who shall develop an acquisition strategy tailored to the particular major system acquisition program.
The strategy is the program manager’s overall plan for satisfying the mission need in an effective, economical, and timely manner.
The acquisition strategy will be in writing and prepared in accordance with the requirements subpart 7.1, except where inconsistent with the subpart.
- Competition-the program manager shall,
throughout the acquisition process, promote full and open competition major system between alternative concepts and sources, as long as it is economically beneficial and practicable.
- Mission
oriented solicitations-
contracting officer should, promulgate advance notifications of acquisition, conduct presolicitation conferences appropriate, and seek industry input, prior to issuing a solicitation. The solicitation shall
“describe the nature of the need in terms of mission capabilities required, without reference to any specific systems to satisfy the need;
“indicate and explain when appropriate,
the schedule,
capability, and cost objectives and any known constraints in the acquisition;
- provide, or indicate how access can be obtained to, all government data related to the acquisition;
- include selection requirements consistent with the acquisition strategy;
- clearly state that each offeror or is free to propose its own technical approach, main design features, subsystems, and alternatives to schedule, cost, and capability goals; and
*include of an earned value management system that complies with the guidelines of Electronic Industries Alliance Standard 748.
Concept exploration contracts-Concept exploration contracts are
for short periods and are designed to help refine the proposed concept and reduce concept technical uncertainties is for greater definition of the concept. Continued concept exploration contracts will be based on if the concept approach remains promising, the contractor’s progress is acceptable, and it is economically practicable to do so.
Demonstration
contracts—
demonstration contracts for the next step
from
concept exploration as
it demonstrates a proof of concept in actual performance.
A deliverable for the demonstration contract is a price proposal totally funded by the government for full-scale development.
Full-scale development contracts— whenever practicable, the
full-scale development contracts should provide
for the contractors to submit priced proposals for production that are based on the latest quantity, schedule, and logistics requirements and other considerations that will be used in making production decisions.
Full production-full production is the final step in
the phased approach toward major systems acquisition. At this point and before full production begins the agency had must reaffirm the mission and needs of the program objectives and grants approval to proceed with production.
B. TESTING, QUALIFICATION AND USE OF INDUSTRIAL RESOURCES
DEVELOPED UNDER TITLE III
DEFENSE PRODUCTION ACT (FAR
FAR 34.100 SCOPE
This subpart prescribes
policies and procedures for the testing, qualification, and use of industrial resources manufactured or developed with the assistance provided under section 301, 302, or 303 of the Defense Production Act of 1950.
B. TESTING, QUALIFICATION AND USE OF INDUSTRIAL RESOURCES
DEVELOPED UNDER TITLE III
DEFENSE PRODUCTION ACT (FAR
FAR 34.100 SCOPE
“Item of supply,” as used in this subpart, means
any individual part, component, subassembly, assembly, or subsystem integral to a major system, and other property which may be replaced during the service life of the system. The term includes spare parts and replenishment parts but does not include packaging or labeling associated with shipment or identification of an “item.”
B. TESTING, QUALIFICATION AND USE OF INDUSTRIAL RESOURCES
DEVELOPED UNDER TITLE III
DEFENSE PRODUCTION ACT (FAR
FAR 34.100 SCOPE
It is the policy of the government, as required by section 126 of Public Law 102-558, to pay for
any testing and qualification required for the use or incorporation of the industrial resources manufactured or developed with assistance provided under Title III of the Defense Production Act of 1950.
B. TESTING, QUALIFICATION AND USE OF INDUSTRIAL RESOURCES
DEVELOPED UNDER TITLE III
DEFENSE PRODUCTION ACT (FAR
FAR 34.100 SCOPE
FAR 34.103 TESTING AND QUALIFICATION
FAR 34.103 clearly defines the procedure in which the contractor and contracting officer must follow to comply
with a Title III request for resources. Consultation with the Defense Production Act Office, Title III Program located at Wright Patterson AFB, Ohio is required.
C. EARNED VALUE MANAGEMENT SYSTEM (FAR 34.201, 34.202, AND 34.203)
Thumbnail Synopsis: EVMS offers the government and contractor
a structured approach toward managing major acquisitions by creating visibility through Integrated Baseline Reviews and frequent reporting of schedule, cost, and resource concerns affecting the major acquisition.
C. EARNED VALUE MANAGEMENT SYSTEM (FAR 34.201, 34.202, AND 34.203)
FAR 34.201 POLICY
An Earned Value Management System (EVMS) is required for major acquisitions for development, in accordance with OMB circular A-11 and in compliance with Electronic Industries Alliance standard 748 (EIA 748). Should an
offeror or not have an EVMS compliant system it will provide to the government a comprehensive plan for compliance with the EVMS standards.
It is to be noted that offeror shall not be eliminated from consideration for contract award because they do not have an EVMS that complies with the standards.
EVMS standards will be applied to subcontractors using the same rules as applied to the prime contractor.
C. EARNED VALUE MANAGEMENT SYSTEM (FAR 34.201, 34.202, AND 34.203)
FAR 34.202 INTEGRATED BASELINE
REVIEWS
The Integrated Baseline Review (IBR) is designed to be a joint assessment by both offeror/ contractor and the government. The integrated baseline review will assess:
- the ability of the project’s technical plan to achieve the objectives of the scope of work;
- adequacy of the time allocated for performing the defined tasks successfully achieve the project schedule objectives;
- ability of the performance measurement baseline (PMB) to successfully execute the project and attain cost objectives, recognizing the relationship between budget resources, funding, schedule, and scope of work;
- availability of personnel, facilities, and equipment when required, to perform the defined tasks needed to execute the program successfully; and
- the degree to which the management process provides effective and integrated technical/schedule/cost planning and baseline control.
The timing and conduct of the IBR will be in accordance with the agency’s
procedures, if pre-award IBR is conducted, the solicitation must include procedures for conducting the IBR an address whether offers will be reimbursed for the associated cost.
