(a) This subpart establishes clearance requirements for the contract actions identified below:
(1) An action intended to result in award of a competed, sole source or negotiated contract or modification of any contract;
(2) An action intended to result in definitization of an undefinitized contract action (UCA), an undefinitized change order, or an undefinitized long lead contract, or in the pricing of:
(i) An unpriced option or an option with only a not-to-exceed price;
(ii) Provisioned items orders (PIOs); or
(iii) Unpriced orders under Basic Ordering Agreements (BOA);
(3) An action intended to result in issuance of a modification implementing a unilateral price determination;
(4) Priced orders issued under BOA; and
(5) An action intended to result in the exercise of an option when the option exercise is not in strict accordance with the previously approved pricing arrangement or other contract terms and conditions.
(b) Excluded from business or contract clearances are:
(1) actions that create a UCA, undefinitized change order, undefinitized long lead contract;
(2) orders issued against existing contracts in accordance with the terms and conditions of the basic contract; except task orders for services issued against multiple award indefinite delivery/indefinite quantity contracts to include GSA schedules;
(3) modifications increasing fund obligations under incrementally funded contracts when modifications do not exceed dollar amounts stated in the original approved clearance; or
(4) modifications solely for changes as a result of Service Contract Act wage rates/fringe benefits or Fair Labor Standards Act minimum wages.
(c) “Business Clearance” means:
(1) For competitive acquisitions, approval to issue the solicitation.
(2) For noncompetitive contract actions, approval to begin negotiations.
(d) “Begin negotiations” means, for the purpose of noncompetitive contract actions, starting discussions with an offeror for the purpose of reaching agreement on all aspects of the proposal. Initiation of audits and fact-finding necessary to evaluate the proposal and develop the Government’s negotiation objective do not constitute negotiations.
(e) “Contract Clearance” means:
(1) For competitive acquisitions conducted without discussions, approval by the clearance approval authority for the SSA to make the decision to award.
(2) For competitive acquisitions with discussions -
(i) Approval by the clearance approval authority for the SSA to request final proposal revisions in accordance with FAR 15.307; and
(ii) Approval by the clearance approval authority for the SSA to make a source selection decision.
(3) For noncompetitive contract actions, approval by the clearance approval authority to award a contract or contract modification/contract action.
