7.106 Additional requirements for major systems
Source: FAR 7.106 on acquisition.gov
FAR 7.106 requires acquisition planners and offerors for major systems to address future competition and supply chain flexibility, including technical data rights and multiple sourcing, in both development and production contracts.
Overview
FAR 7.106 outlines additional planning requirements for the acquisition of major systems, emphasizing the need to promote competition and future supply chain flexibility. When planning solicitations for major system development or production contracts, agencies must consider requiring offerors to propose the use of commercially available items or items available within government supply systems, and to identify ways the government can competitively acquire system components in the future. The regulation also encourages proposals that provide the government with rights to technical data and the development of multiple sources for future acquisitions. These considerations must be factored into both competitive and noncompetitive contract awards, aligning acquisition strategies with long-term government interests.
Key Rules
- Development Contract Planning
- Planners should require proposals for using commercially or government-available items and for future competitive acquisition of high-quantity items.
- Production Contract Planning
- Planners should require proposals that ensure future competitive acquisition, including rights to technical data and multiple supply sources.
- Evaluation and Negotiation
- Contracting officers must consider these proposals in evaluations and negotiations, taking into account system purpose and technology needs.
Responsibilities
- Contracting Officers: Must consider and evaluate proposals addressing supply chain flexibility and competition; apply these factors in both competitive and noncompetitive awards.
- Contractors: Should prepare proposals that address use of available items, future competition, technical data rights, and multiple sourcing.
- Agencies: Must integrate these requirements into acquisition planning for major systems and ensure compliance during solicitation and award.
Practical Implications
- This section ensures that major system acquisitions are structured to maximize competition and supply chain resilience over the system’s lifecycle.
- Contractors must be proactive in addressing these requirements in their proposals, or risk being less competitive.
- Common pitfalls include failing to address technical data rights or not proposing multiple sources, which can limit future government flexibility.
(a) In planning for the solicitation of a major system (see part 34) development contract, planners shall consider requiring offerors to include, in their offers, proposals to incorporate in the design of a major system-
(1) Items which are currently available within the supply system of the agency responsible for the major system, available elsewhere in the national supply system, or commercially available from more than one source; and
(2) Items which the Government will be able to acquire competitively in the future if they are likely to be needed in substantial quantities during the system’s service life.
(b) In planning for the solicitation of a major system (see part 34) production contract, planners shall consider requiring offerors to include, in their offers, proposals identifying opportunities to assure that the Government will be able to obtain, on a competitive basis, items acquired in connection with the system that are likely to be acquired in substantial quantities during the service life of the system. Proposals submitted in response to such requirements may include the following:
(1) Proposals to provide the Government the right to use technical data to be provided under the contract for competitive future acquisitions, together with the cost to the Government, if any, of acquiring such technical data and the right to use such data.
(2) Proposals for the qualification or development of multiple sources of supply for competitive future acquisitions.
(c) In determining whether to apply paragraphs (a) and (b) of this section, planners shall consider the purposes for which the system is being acquired and the technology necessary to meet the system’s required capabilities. If such proposals are required, the contracting officer shall consider them in evaluating competing offers. In noncompetitive awards, the factors in paragraphs (a) and (b) of this section, may be considered by the contracting officer as objectives in negotiating the contract.