J&A ACTION MEMORANDUM TEMPLATE Attached is a standard template for use by Navy contracting offices in preparing memoranda for forwarding J&As to ASN(RDA) for approval. The format used is the standard memorandum format used in the Navy Secretariat. Although use of the Secretariat format is encouraged, its use is not mandatory and activities may use their own standard formats. If they do use their own formats, activities must ensure that the arrangement and content of paragraphs follow the paragraph structure/guidance that is used in the template and outlined below. Memoranda should be brief and concise -- often 1 page, and generally no more than 2 pages in length. The following is the standard paragraph structure* with which forwarding memoranda must comply: First Bullet Paragraph - State memo's purpose is to obtain approval of a J&A. If a class J&A, so state. Second Bullet Paragraph - Briefly describe what the J&A covers. This should include: • The type of contract action(s) involved (e.g., award of a contract, modification of a contract, etc.) • A brief summary of the supplies or services to be acquired, including quantities, by fiscal years, for major items. • The total estimated value of the contract and the type of funds that will be used. • The identity of the planned contractor (or contractors, if appropriate). Also, identify the planning document (Acquisition Plan and/or Acquisition Strategy -generally only one is required) that supports the procurement. Third Bullet Paragraph - Summarize in about one to three sentences the rationale for using other than full and open competition set forth in Paragraph 5 of the J&A. The intent is to give a high-level picture of the rationale, but not to provide the supporting details. Also, if it would help provide a context for the procurement that would facilitate understanding of the rationale for the proposed business approach, identify other information as appropriate. Additional information might explain, for example, that: (i) the planned contract is a final buyout of the requirement, (ii) the sole source was determined through a prior competitive down-selection, (iii) under a prior contract the program experienced significant cost savings when it broke out the requirements covered by the planned contract from a larger system integration contract, (iv) the contractor plans
to integrate work under the contract with a commercial production line, or (v) the contractor plans to enter into a partnering arrangement with another firm or Government entity for highly specialized requirements. Fourth Bullet Paragraph - Identify the planned contract type and the estimated fee or profit percentage, including a brief rationale for both. For FPI or CPIF contracts also identify the anticipated share ratio. Fee/profit percentages and share ratios may be addressed in terms of a range of likely results. If schedule or other technical performance incentives are expected to be included in the contract, address and briefly describe what these incentives will cover. Identify the objective, measurable aspects of these incentives. If multiple contract types are planned, provide information for each contract type and identify, in general terms, which items of hardware or services will be covered by that contract type and what percentage of the total effort they represent. A table or attached charts/graphs, etc. may be used for clarity. Fifth Bullet Paragraph - Identify any information included in the J&A that differs from information in the supporting Acquisition Strategy/Plan, and explain the rationale for these differences. Also, address any significant congressional or other programmatic issues. Sixth Bullet Paragraph – Identify a SYSCOM point of contact, including name, phone number and e-mail address. This should be someone that the ASN(RDA) staff can contact to get answers to questions regarding information included in the forwarding memorandum or the J&A.. At the end of the memo, leave a space for ASN(RDA) comments.
* NOTE: If information to be included in one of the standard paragraphs is extensive, additional paragraphs may be used, keeping the required information in the same order as described above. Attached charts or graphs may also be used to convey required information.
[LETTER HEAD] ACTION MEMO __________ (Date) FOR: ASSISTANT SECRETARY OF THE NAVY (RDA) VIA: DEPUTY ASSISTANT SECRETARY OF THE NAVY (ACQ) FROM: (Name, Title, Activity -- Named individual signs above typed info)
SUBJECT: _______________________________________________________ (For SUBJECT, use the following format: [ACTIVITY NAME] JUSTIFICATION AND APPROVAL [NUMBER] FOR [TOP-LEVEL DESCRIPTION OF SUPPLIES/SERVICES COVERED BY THE J&A] Example: NAVAL SEA SYSTEMS COMMAND JUSTIFICATION AND APPROVAL (J&A) 22567 FOR LEAD YARD SERVICES FOR VIRGINIA CLASS SUBMARINES • Approve J&A (or state CJ&A if applicable) at Tab A • (Briefly describe what the J&A covers, in terms of o (i) the type of contract action(s) involved, o (ii) the identity of the planned contractor[s], o (iii) the supplies or services to be acquired [include quantities, by fiscal years, for major items], and o (iv) the total estimated value of the contract and the type of funds that will be used. Also identify the planning document [e.g., the Acquisition Strategy and/or Acquisition Plan--only one required] that supports the procurement. If none, explain why not.) Example: This J&A covers award of a contract to ABC Aircraft Company, a fully owned subsidiary of DEF Company, for the SDD phase of the XYZ Program. This effort will include the design and development of an air vehicle, including two Ground Test Vehicles and five Engineering Development models, testing, engineering studies and related supplies and services. The estimated total value of the contract is $X.XB and will be funded with FY06 through FY11 RDT&E funds. The planned contract is supported by NAVAIR Acquisition Strategy 05003-01, approved by USD(AT&L) on 5 SEP 2005.
Example: This J&A covers award of a contract to LGI Corporation for performance-based logistics support of the EFG system. The contract will include a three-year base period and four one-year options. Total estimated value of the contract is $154M and will be funded with Navy Working Capital Funds (NWCF).) The J&A is consistent with NAVICP Acquisition Plan No. 12345, approved July 8, 2005 by PEO(ABC). • (In a few sentences, summarize the rationale for using other than full and open competition. If it would help provide a context for the procurement that would facilitate understanding of the rationale for the proposed business approach, then identify other information as appropriate. Additional information might explain, for example, that: o the planned contract is a final buyout of the requirement, o the sole source was determined through a prior competitive down-selection, o under a prior contract the program experienced significant cost savings when it broke out the requirements covered by the planned contract from a larger system integration contract, o the contractor plans to integrate work under the contract with a commercial production line, or o the contractor plans to enter into a partnering arrangement with another firm or Government entity for highly specialized requirements.) Example: The FAR 6.302-1 exception to full and open competition applies as PRP is the sole designer, developer and manufacturer of the XX-46 series radar system and is the only contractor with the requisite knowledge, experience and technical data that can meet the Government’s requirements on a timely basis. Example: MN Corporation is the sole designer, developer and manufacturer of the F-XX-416 series engines and is the only contractor with the requisite knowledge, experience and technical data that can provide the required performance based logistics support for these engines. Until 2001, MN supported these engines as a subcontractor to the prime contractor for the entire F-112 aircraft support contract. Breaking out this portion of the total system effort resulted in a 22% reduction in F-XX-416 engine support costs. Example: The J&A cites 10 U.S.C. 2304(c)(3) as the statutory exception justifying use of other than full and open competition. This exception applies when it is necessary to award the contract to a particular source in order to establish or maintain an essential engineering, research, or development capability to be provided by an educational or other nonprofit institution or a federally funded research and development center (FFRDC). As a FFRDC, CNA is uniquely qualified to provide these services because of its unquestioned objectivity
and lack of potential conflicts of interest, its confidentiality in protecting very sensitive military and intelligence information, its familiarity with the needs of the Navy and Marine Corps, and its establishment of a continuing research agenda for the Navy and Marine Corps. • Identify: o The planned contract type, including a very brief rationale for this choice; o An estimate of the fee or profit percentage that will be negotiated (may be expressed as a range of likely results), and a very brief explanation of the basis of this estimate; o For FPI or CPIF contracts also identify the anticipated share ratio(s) (may be addressed in terms of a range of likely results); o Schedule or other technical performance incentives that are expected to be included in the contract, if any -- stress objective, measurable incentives. If multiple contract types are planned, provide the above information for each contract type and identify, in general terms, which items of hardware or services will be covered by that contract type and what percentage of the total effort they represent. To avoid confusion, information on multiple contract types may be included under separate bullet paragraphs.) Example: The contracting officer intends to award a firm-fixed-price (FFP) contract and anticipates, on the basis of historical experience with similar contracts, that the DFARS-mandated weighted guidelines method will support a negotiated profit rate of between 13-15%. A FFP contract is appropriate because this is a contract for follow-on full rate production units. Example: The majority of the effort (~ 95%) will be acquired on a CPIF/AF basis. Use of a cost-reimbursement contract is appropriate in view of the technical uncertainties associated with completion of the SDD phase. Use of cost and award fee incentives will encourage the contractor to balance emphasis on cost control with technical, schedule, and management performance. The Incentive Fee arrangement is expected to include a 50/50 share line and include a minimum fee of 2% and a maximum fee of 8%. The award fee pool is expected to equal about 4-5% of target cost and to include a combination of objective and subjective award criteria. Objective criteria will be tied to achievement of specific technical performance levels and schedule milestones and will cover about 60% of the award fee pool. The remaining 5% of the contract effort will be for special studies, the scope of which cannot be defined in advance with any certainty, and will be negotiated, therefore, on a CPFF basis. The fixed fee will likely be 7.58.5%.
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(Briefly explain any differences between information included in the J&A and information in the supporting Acquisition Strategy/Plan, and explain the rationale for these differences. Pay particular attention to differences in quantities and funding levels. Also, note any significant congressional or other programmatic issues. These may include, for example: Pending legislation that could impact the procurement, Known congressional concerns with the acquisition strategy, Recent test results that might delay the program, or Application of the 10 U.SC. 2464 "core capability" requirements to the procurement.) Example: Last month, the PEO/PM met with Senator Smith's staff to discuss the feasibility of using the XYZ system to meet our requirements in lieu of the ABC system. Although the PM provided a detailed explanation of why this would not be feasible, it's possible that Senator Smith will contact you directly to discuss this subject further. The PM is prepared to provide you with a briefing, as necessary. Example: Capabilities needed to maintain and repair the JKL weapon system are "core" capability requirements pursuant to 10 U.S.C. 2464 and, therefore, DoD is required to maintain organic depot-level maintenance and repair capability. To comply with the statutory requirement, ABC Corp. plans to partner with Naval Air Depots (NADEP) North Island and Jacksonville for purposes of performing depotlevel maintenance and repair. The contract provisions will allow ABC to temporarily remove work from a NADEP if the NADEP’s performance is impacting ABC’s ability to meet its contractual performance requirements. With the contracting officer’s concurrence, ABC may also be able to remove some work permanently. Congressional notification will be required prior to contract award in accordance with 10 USC 2464 (Note).
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(Identify a SYSCOM point of contact, including name, phone number and email address.)
RECOMMENDATION: Approve J&A at TAB A.
COORDINATION: [To be completed by DASN(ACQ)]
ASN(RDA) COMMENTS: