(a) General. For those activities (Table 1-1) for which the Director, Acquisition Management, J-7, is the head of the contracting activity (HCA), the actions listed below require the review and approval of the Director, Acquisition Management, J-7, or other DLA official so delegated. Any action submitted, including those under 1.690-3(b) and (c), shall be submitted in accordance with the instructions shown in 1.690-7. For review purposes, the dollar amount of a contract action shall be either the proposed high objective, maximum estimated, or actual amount of obligation, and shall include the amount of any option whether or not evaluated or exercised at time of award. Actions listed below will be selected pursuant to 1.690-3(b) and (c), and 1.690-7(a).
(b) Presolicitation. Review and approval prior to issuance (see 1.690-7(c)).
(1) Two step sealed bidding;
(2) Contractor versus Government performance (OMB Circular No. A-76, FAR 7.3);
(3) Acquisitions issued under authority of FAR 6.302-3, industrial mobilization; or engineering, developmental or research capability.
(c) Prenegotiation (including sole bids and sole offers) Review and approval is required prior to discussions/negotiations for the following actions: (See 1.690-7(d))
(1) All actions other than firm fixed-price or fixed price with economic price adjustment, if the total dollar amount exceeds that listed in Table 1-1 for the activity concerned.
(2) All actions resulting from an invitation for bids when award is proposed to a sole responsive, responsible bidder, and the total dollar amount exceeds that listed in Table 1-1 for the activity concerned.
(3) All actions, including priced orders issued under basic ordering agreements, resulting in receipt of a sole offer in response to a request for proposals in excess of the amount set forth in Table 1-1 for the activity concerned.
(4) All actions (excluding those covering the set-aside portion of a small business or labor surplus area set-aside) resulting in receipt of more than one offer in response to a request for proposal in excess of the amount set forth in Table 1-1 for the activity concerned.
(5) Each exercise of an option, when the option was not evaluated at time of award of the basic contract, in excess of the amount set forth in Table 1-1 for the activity concerned.
(6) Definitization of letter contracts or other undefinitized contractual actions approved in accordance with subparagraph (h) below.
(7) All contracts negotiated under the Small Business Administration (SBA) pursuant to section 8(a) of the Small Business Act exceeding $1,000,000.,
(d) Preaward. During each fiscal year, each activity listed under Table 1-1 shall notify HQ DLA, J-73 of the first three construction contracts (FAR 36.102) which exceed the amount in Table 1-1 Construction Threshold which require preaward review and approval in accordance with the procedures at 1.690-7(a) and (g).
(e) Pre-award review is also required for all General Services Administration (GSA) delivery and task orders, Blanket Purchase Agreements against GSA schedules, and Governmentwide Acquisition Contracts (GWACs) (such as GSA GWACs and NASA Solutions for EnterpriseWide Procurement (SEWP)) exceeding $1,000,000.
(f) Post-award. All DLA contracts are eligible for a post-award review by HQ DLA in accordance with the procedures at 1.690-7(g). The Chief, Procurement Integrity & Pricing Division (J-73), may identify and request files subject to post-award review.
(1) Orders placed against requirements contracts of other DOD activities and other Federal agencies, delivery and task orders placed against GSA schedule contracts, Governmentwide Acquisition Contracts (GWACs), valued at less than $1,000,000 and all contracts with the National Industries for the Blind and National Industries for the Severely Handicapped.
(2)Contracts negotiated with Small Business Administration (SBA) pursuant to section 8(a) of the Small Business Act valued at less than $1,000,000.
(3) Orders issued under indefinite delivery contracts or DLA multiple award schedules, where the basic contract was reviewed by HQ DLA, or where the basic contract was awarded under sealed bid procedures and the award was based on adequate price competition.
(4) Repurchases against any contract terminated for default.
(h) Letter contracts/other undefinitized contractual actions. Approval is required prior to award of a letter contract or other undefinitized contractual instrument when the resulting definitive contract is expected to exceed $650,000, or the applicable criteria in Table 1-1 for the activity concerned, whichever is less. After review by the local clearance authority, the letter requesting approval shall be submitted to HQ DLA, ATTN: J-73. A copy of any modification issued for an action previously approved in accordance with this subparagraph shall be forwarded to HQ DLA, ATTN: J-73, when the modification affects the:
(1) Unit price or total price ceiling for the definitized action;
(2) Limit of the Government's liability;
(3) Definitization date; or
(4) Progress or provisional payments, as initially proposed. See 16.603-90 regarding procedural requirements for approval to award a letter contract or unpriced basic ordering agreement (BOA) order, respectively.
