As prescribed in 5317.7590-1, insert the following provision, substantially as written, in Section M when use of the Insurance Policy is desired:
AWARD OF MISSION ESSENTIAL QUANTITY (AFMC) (AUG 1998)
(a) The government has determined that a break in the supply of this item (that is, failure to deliver due to timeliness and/or conformance) would jeopardize support to operational units’ mission capability. Additionally, the item is of such complexity and/or so critical that first article testing measures are required for all unproven sources to ensure that the unproven source is capable of producing a conforming part. Therefore, the government reserves the right to award the Mission Essential Quantity (MEQ) and, if necessary, the remainder of the requirement to a proven source. In such event, the proven source must be a responsive, responsible offeror and also be the lowest in price of all proven offerors, price and price-related factors considered. Therefore, two contract line items are provided to correspond with each of the two alternatives.
(b) The government shall first determine the apparent successful offeror for the complete quantity under Alternative 1. If offers are received from both proven and unproven sources and it is determined that an unproven source is the apparent low offeror (and is also responsive and responsible), then the prices under Alternative 2 shall be evaluated. Once a decision has been made to progress to Alternative 2, offers under Alternative 1 shall no longer be considered (e.g. the contracting officer shall not compare the proven source’s offer under Alternative 1 and the unproven source’s offer under Alternative 2). If only unproven sources submit offers, Alternative 1 will be used to determine the low offeror and award will be made for that quantity.
(c) A proven source is an offeror who has previously satisfactorily provided the identical item to the government or who proposes to provide an item manufactured by the prime manufacturer or the prime manufacturer’s vendor (when there is no value added by the prime manufacturer).
(d) An unproven source is an offeror who has not previously satisfactorily provided the identical item to the government and who proposes to provide an item manufactured by other than the prime manufacturer or the prime manufacturer’s vendor (when there is no value added by the prime manufacturer).
(e) Competitive negotiated acquisition procedures may be used to determine low offeror status if,
(1) a proven source is not the low offeror, based on either initial proposals or on the final proposal revision if discussions are conducted, and
(2) if the proven source’s price is not determined to be based on adequate price competition pursuant to FAR 15.403-1, Prohibition on obtaining cost or pricing data. The contracting officer may proceed with an award to the low unproven source and may request cost or pricing data from the proven source. When received and evaluated, negotiations shall follow as necessary to determine fair and reasonable prices. Under these circumstances, any contract with the proven source would contain the clause at FAR 52.215-10, Price Reduction for Defective Cost or Pricing Data.
(f) The government is under no obligation to exercise any options provided for under these procedures. Acceptable delivery of the basic award quantity by an unproven source shall not bind the government to exercise all or part of the option quantities, or to exercise options in any contract with the unproven source in lieu of options in any separate award to a proven source. In addition, the government reserves the right to reject, as nonresponsive, any offer in which the prices proposed in either Alternative 1 or 2 are determined, by the Contracting Officer, to be materially unbalanced.
(End of Provision)
