6.304 Approval of the justification
Source: FAR 6.304 on acquisition.gov
Justifications for contracts awarded without full and open competition must be approved in writing at specific levels based on the contract's total estimated value, including all options.
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's dollar value, ensuring that higher-value contracts receive higher-level scrutiny. It also addresses special cases, such as contracts awarded under national security exceptions and class justifications, and requires that the value of all contract options be included when determining the necessary approval authority.
Key Rules
- Approval Levels by Dollar Threshold
- Contracts ≤ $900,000: Contracting officer's certification suffices unless agency procedures require higher approval.
- Contracts > $900,000 and ≤ $20 million: Approval by the advocate for competition or higher authority; not delegable.
- Contracts > $20 million and ≤ $90 million (or ≤ $150 million for DoD, NASA, Coast Guard): Approval by head of procuring activity or qualified designee.
- Contracts > $90 million (or > $150 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 (national security): Approval is automatic upon required determination.
- Class justifications: Approval level based on total estimated value, per agency procedures.
- Options Included
- All contract options must be included in the estimated value for approval level determination.
Responsibilities
- Contracting Officers: Ensure justifications are prepared and routed for approval at the correct level based on total contract value, including options.
- Contractors: Must be aware that contract awards without full and open competition require proper justification and approval.
- Agencies: Must establish procedures for class justifications and ensure compliance with approval authority requirements.
Practical Implications
This section ensures oversight and accountability for non-competitive contract awards by requiring escalating approval levels as contract value increases. Failure to obtain the correct approval can delay or invalidate contract awards. Contractors should expect heightened scrutiny and documentation requirements for higher-value or non-competitive contracts.
(a) Except for paragraph (b) of this section, the justification for other than full and open competition shall be approved in writing—
(1) For a proposed contract not exceeding $900,000, the contracting officer's certification required by 6.303-2(b)(12) will serve as approval unless a higher approving level is established in agency procedures.
(2) For a proposed contract over $900,000 but not exceeding $20 million, by the advocate for competition for the procuring activity designated pursuant to 6.501 or an official described in paragraph (a)(3) or (4) of this section. This authority is not delegable.
(3) For a proposed contract over $20 million, but not exceeding $90 million, or, for DoD, NASA, and the Coast Guard, not exceeding $150 million, by the head of the procuring activity, or a designee who—
(i) If a member of the armed forces, is a general or flag officer; or
(ii) If a civilian, is serving in a position in a grade above GS-15 under the General Schedule (or in a comparable or higher position under another schedule).
(4) For a proposed contract over $90 million or, for DoD, NASA, and the Coast Guard, over $150 million, by the senior procurement executive of the agency designated pursuant to https://www.govinfo.gov/link/uscode/41/1702" target="_blank">41 U.S.C. 1702(c) in accordance with agency procedures. This authority is not delegable except in the case of the Under Secretary of Defense for Acquisition and Sustainment, acting as the senior procurement executive for the Department of Defense.
(b) Any justification for a contract awarded under the authority of 6.302-7, regardless of dollar amount, shall be considered approved when the determination required by 6.302-7(c)(1) is made.
(c) A class justification for other than full and open competition shall be approved in writing in accordance with agency procedures. The approval level shall be determined by the estimated total value of the class.
(d) The estimated dollar value of all options shall be included in determining the approval level of a justification.