Approval of the justification
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.