(a) Milestone review and approval levels and criteria for service acquisitions Subject to I- ARB review (see 37.590-4 (c) and (d), above) shall be in accordance with 90. 1502 (a) (iii) (i.e., after the Business Strategy and Acquisition Planning phase (Phase II) as illustrated in the chart at 90.1502 (a); Phase I is not applicable). At each decision point, the I-ARB shall either permit the acquisition to proceed, modify the strategy, or terminate the process.
(b)(1) For acquisitions with a total value under $50 million (that is, not subject to I-ARB review), milestone reviews and approvals shall be established and conducted in accordance with local procedures. These procedures should ensure that the contract is continuously reviewed and assessed.
(2) As a general rule, business strategy and acquisition plans should be evaluated by the decision authorities identified in 37.590-4, above, prior to release of the solicitation; this is Milestone A. Some elements to be reviewed may include, but shall not be limited to, logistical benefits; statement of work/statement of objectives (SOW/SOO); contract type; contract incentives/disincentives; metrics; and method of contract performance management, such as a performance management plan or performance review board.
(3) Following the solicitation and offer evaluation process, another review should be conducted to ensure the apparently successful proposal is consistent with all the SOW/SOO requirements. The cost/price proposal should also be compared with historic support costs or other available comparative cost/price data, as applicable. Authorization to proceed to award, exercise an option or determination to terminate the process, is Milestone B.
(4) Implementation review consists of continuous contractor performance monitoring by means of the methods and measurements included in the SOW/SOO or in the Government’s Quality Surveillance Plan. Monitoring should be conducted to ensure that all expected outcomes from previous phases are appropriately evaluated and addressed before moving on to the next phase of the acquisition; this is especially critical when a contract includes options. Again, the review should focus on an assessment of contractor performance against established, measurable outcomes called out in the contract and whether the Agency is getting what it is paying for in term as of contract performance and whether the customer’s requirements are being fulfilled by the terms and performance of the contract. It should also include (as appropriate) a reconsideration of logistical costs and benefits, as measured against baseline documentation prepared for Milestones A and B. A final assessment should also be made, and entered into the Contract History file, upon completion of contract performance. The implementation review and assessment of contractor performance as described in this paragraph is Milestone C.
