As prescribed in 5317.7602-1(90), insert the following clause, substantially as written, in Section I:
PROVISIONING PROCEDURES (AFMC) (AUG 2002)
(a) Provisioning functions to be performed:
(1) Procuring Contracting Officer (PCO) and Administrative Contracting Officer (ACO) responsibilities. The PCO is the only individual authorized to provide redirection of effort, modify or amend any of the terms or conditions of this contract except as stated below. The Provisioning PCO (PPCO) is the only individual authorized to issue Provisioned Item Orders (PIO) under the terms of this contract. The ACO is the individual authorized to negotiate and issue definitive priced documents under this contract.
(2) The activity designated to issue PIOs is the PPCO at (insert complete address/location). PIOs shall be issued on Standard Form 30, Amendment of Solicitation/Modification of Contract, and shall state the quantities of the specific items being ordered identified by Exhibit Line Item Number (ELIN) and required delivery schedule.
(i) For initial spares, the PIO shall obligate sufficient funds to cover the estimated price of the items ordered. The Contractor shall proceed as directed to the extent that the cost incurred in compliance with such order(s) shall not exceed the amount set forth in such orders as the maximum obligation of the government pending establishment of prices for such items. Standard Form 30 shall be used to effect increases and decreases in quantities of unpriced items including cancellations. Increases and decreases in priced items shall be effected by use of a supplemental agreement issued by the ACO and duly executed by both parties.
(ii) For other than initial spares, the PIO shall obligate funds pursuant to the limitations of DFARS 217.7404-4, Limitation on obligations, based on the not-to-exceed price of the items ordered. The Contractor shall proceed as directed to the extent that the cost incurred in compliance with such order(s) shall not exceed the amount set forth in such orders as the maximum obligation of the government pending establishment of prices for such items. Standard Form 30 shall be used to effect increases and decreases in quantities of unpriced items including cancellations. Decreases in priced items shall be effected by use of a supplemental agreement issued by the ACO and duly executed by both parties.
(b) Inclusion of a provisioning requirement package:
(1) Initial Provisioning Performance Specification (IPPS), with attachments, if listed in Section J of the contract, is incorporated herein and made a part hereof.
(2) AFMC Form 718, "Provisioning Performance Schedule," if listed in Section J of the contract, is incorporated herein and made a part hereof.
(3) If any of the above documents are not listed in Section J of the contract, the contracting activity shall incorporate those documents by modification within (insert number of days) days after issuance of the contract. Revisions to the above documents shall also be incorporated into the contract by modification upon request by the Prime Provisioning Activity.
(c) Provisioning technical documentation:
(1) The schedule for delivery of provisioning technical documentation is included on the DD Form 1423, Contract Data Requirements List. If a schedule is not provided, it shall be incorporated by modification when available.
(2) Appropriate provisioning technical documentation requirements shall flow down when a subcontractor prepares the documentation.
(d) Interim release:
(1) The estimated dollar amount, if any, cited in Section B at the end of the provisioning item description is a planning figure and is intended to establish a limitation solely for the interim release provisions of the applicable provisioning document. Decreases in the planning figure for interim release will be by unilateral contractual modification. Subsequent changes effecting an increase of the dollar limitation will be determined by the estimated dollar amount on PIOs.
(2) Contractor interim release of long lead items shall be authorized only by written order from the PPCO. If authorized, the Contractor shall submit appropriate provisioning technical documentation and estimated unit cost(s) within thirty (30) days of the release.
(e) Definitization schedule:
(1) Within sixty (60) calendar days of receipt of a PIO, the Contractor shall submit a firm-fixed-price proposal to the PCO/PPCO (as applicable), through the ACO, containing suitable cost or pricing data as defined within FAR Subpart 15.4, Contract Pricing. Pursuant to FAR 42.3, Contract Administration Office Functions, the ACO shall negotiate firm prices and execute a supplemental agreement to definitize PIOs and deobligate excess funds.
(2) Overage proposals/reduction or suspension of progress payments. Submission by the Contractor of adequate cost proposals, within sixty (60) calendar days from the date of issuance of the PIO, is deemed to be a "material requirement" of the contract within the meaning of the Progress Payment clause of this contract. If the Contractor fails to provide a complete definitive proposal adequate for negotiation within the time stipulated above, the government may reduce or suspend progress payments pursuant to FAR 52.232-16, Progress Payments, paragraph (c)(1), by following the procedures set forth in FAR 32.503-6, Suspension or reduction of payments.
(3) In the event the Contractor is unable to meet the schedule contained in a PIO prior to definitization, the ACO shall coordinate the delivery schedule adjustment with the PPCO prior to execution of the supplemental agreement definitizing the PIO.
(f) Distribution: Provide one complete copy of the PIOs and the resultant definitive modifications to each of the following addressees:
(1) (Insert complete procuring contracting officer mailing address)
(2) (Insert complete program manager mailing address)
(3) (Insert complete integrated logistics support manager mailing address)
(4) (Insert complete prime provisioning activity (PPA) mailing address)
(End of Clause)
