6.304
Approval of the justification
Approval of justifications for other than full and open competition must follow strict, value-based thresholds and cannot be delegated below specified levels.
Overview
FAR 6.304 outlines the required approval levels for justifications supporting contract awards made without full and open competition. The section establishes a tiered approval process based on the proposed contract value, with specific thresholds and designated officials responsible for approving justifications. It also addresses special cases, such as contracts under FAR 6.302-7 (public interest) and class justifications, and clarifies that the total estimated value, including options, determines the required approval level.
Key Rules
- Approval Thresholds
- Contracts ≤ $750,000: Contracting officer’s certification suffices unless agency procedures require higher approval.
- Contracts > $750,000 and ≤ $15 million: Approval by the advocate for competition or higher authority; not delegable.
- Contracts > $15 million and ≤ $75 million (or ≤ $100 million for DoD, NASA, Coast Guard): Approval by the head of the procuring activity or a qualified designee.
- Contracts > $75 million (or > $100 million for DoD, NASA, Coast Guard): Approval by the senior procurement executive; not delegable except for the Under Secretary of Defense.
- Special Cases
- Justifications under FAR 6.302-7 are approved upon the required determination, regardless of value.
- Class justifications must be approved per agency procedures, based on total class value.
- Options Included
- All contract options must be included in the estimated value for determining approval level.
Responsibilities
- Contracting Officers: Ensure justifications are prepared and routed for approval at the correct level based on total estimated value (including options).
- Contractors: Provide necessary information to support justifications if requested.
- Agencies: Designate appropriate officials and maintain procedures for approval; ensure compliance with non-delegable authorities.
Practical Implications
- This section ensures oversight and accountability for non-competitive contract awards by requiring higher-level approvals as contract value increases.
- Failure to obtain the correct approval can delay or invalidate contract awards.
- Agencies and contractors must accurately estimate total contract value, including options, to determine the correct approval authority.