BOP-003.0304 Rev. 5, NNSA Headquarters Approval of Contract Actions Process (CAP)

NNSA Policy Letter: BOP-003.0304RS RevisiollS Date: August 8, 2007 TITLE: NNSA Headquarters Approval of Contract Actions Process (CAP) I. OBJECTIVES: A. Ensure compliance with laws, executive orders, regulations, policy issuances and procedures, and sound business practices; B. Provide appropriate checks and balances, and reasonable assurances against fraud, waste, and abuse; C. Facilitate the exercise of sound business judgment with the advice of subject matter experts as appropriate; D. Drive down decision making by using risk based coordination and approvals; and, E. Promote expeditious completion of acquisitions consistent with quality and regulatory requirements. II. APPLICABILITY: Revision 5 A. This Policy Letter applies to all National Nuclear Security Administration (NNSA) organizations, to NNSA personnel having contracting authority to obligate NNSA or non-NNSA funds, Wld personnel otherwise involved in processing NNSA procuxement actions. For the puxpose of this Policy Letter, the term "contract actions" includes procuxement and assistance related actions detailed in Exhibit #1, Headquarters Approval of Contract Actions Table. Aspects of this Policy Letter implement approval for actions that are covered by other NNSA policy issuances. Those other policies may exempt certain NNSA organizations or elements from their provisions. Organizations and elements that believe they are exempt from some aspects of thi~ Policy Letter due to an exemption granted from another policy issuance ofNNSA shall request exemption from those aspects of this Policy Letter in writing to the Director, Office of Acquisition and Supply Management {NA-63). The Director will review any exemptions for applicability and grant or deny such requests in writing. 1 B. Contractors. When NNSA contractors have a requirement to obtain Contracting Officer consent or approval for certain subcontract actions, the Contracting Officer responsible for review and approval shall ensure that the contractor provides docwnentation equivalent to that required for Federal submissions. III. REQUIREMENTS: Revision 5 A. All organizational elements within l\lNSA, responsible for contract actions, must comply with Exhibit# I unless otherwise exempt under Paragraph li.A above. B. Headquarters Approval. I. The Deputy Director, Office of Acquisition and Supply Management, NA-63, is the Head of Contracting Activity (HCA) for contract actions in excess of $25 Million (M). The Associate Director of the Office of Business Services, NNSA Service Center, is the HCA for all other contract actions. 2. Either HCA may require approval of actions not reflected in the. Exhibit #1. 3. HQ approvals of contract actions, excluding M&O contract actions (see #7 below), will be based on oral exchanges during formal briefings by the Contracting Officer, to assigned HQ staff. Briefrngs and exchanges will normally focus on strategies, approaches, methodologies, evaluations, assessments and decisions associated with contract actions. HQ approvals will not normally include review of specific documents associated with contract actions, though such reviews may be performed should issues identified during oral exchanges so dictate. Following the briefing(s) the Contracting Officer shall document the outcome of the discussions in the official contract file. Additionally, the required HQ approval shall be documented, in some manner, for the official contract file.

4. Those involved in a review of contract actions may vary depending on the action being reviewed. Participation may include legal, small business, and program office representation and other members as may be appropriate for a given action. 5. HQ will provide an approval decision at each phase requiring approval of a contract action (i.e., planning phase; solicitation; pre-negotiation phase; post negotiation phase; or prior to sealed bid award), within five days after conduct of oral briefings or receipt of supporting documentation, when necessary. Should additional time be necessary to complete the review, HQ will notity the Contracting Officer of the delay, the rationale, and the expected length of delay. 2 /--- 6. Contract actions shall not be executed until the appropriate approvals in this Policy Letter have been accomplished. A record of Reviews and Approvals shall be included in every acquisition or financial assistance file that requires approval beyond the Contracting Officer; and, the HQ Review or Approval Document (see Exhibit #2) may be included in each file that requires HQ review or approval. An individual HQ Review or Approval Document is not required for every action requiring HQ review or approval if proof of the review and/or approval is otherwise evident. 7. HQ approval of M&O contract actions and subcontracts will be based on reviews of documentation as well as strategies, approaches, methodologies, evaluations, assessments and decisions. However, the HCA may elect to perform M&O contract or subcontract reviews in a manner similar to that used for other contract actions. lV. RESPONSIBILITIES: Rfovision 5 A. Deputy Director, Office of Acquisition and Supply Management {NA-63) will: I. Establish policy for approval of contract actions at the HQ level. Policy below the HQ level is established by the Service Center and the Site Offices. 2. Oversee contracting practices used by organizational elements within NNSA to ensure compliance with laws, regulations, sound business prnctices, and policy. 3. Approve contract actions identified for HQ approval in Exhibit #I, or waive approval. 4. Approve contract actions greater than $25 M. B. Associate Director, Office of Business Services, NNSA Service Center will: I. Implement this Policy Letter at the Service Center. 2. Establish processes, policies, and procedures for contract actions performed by the Service Center, including review and approval of contract actions at the Service Center. 3 Revision 5 3. Establish policy for approval of contract actions at the Service Center level. Policy below the Service Center level is established at the Site Offices. 4. Ensure that all Service Center contract actions represent good business deals for the NNSA and are supported by quality documentation that reflects a high degree of professionalism. 5. Waive approval requirements, as deemed necesssry, for specific Service Center, Site Office or M&O Contractor contract actions above established administrative approval thresholds but less than or equal to $25M. 6. Approve Service Center and Site Office contract actions above established administrative approval thresholds but less than or equal to $25M. 7. Approve Contracting Officer consent to M&O Contractor subcontract actions that exceed the M&O Contractor's approval threshold but are less than or equal to $25 M. 8. Approve all Small Business Waivers (Non M&O) for actions greater than $100 Thousand (K) hut less than or equal to $1M.

9. Approve mistakes in bid befure-award for actions less than or equal to $25M. C. Site Office Managers/Deputy Site Managers will: l. Implement this Policy Letter for contract actions under their cognizance. This responsibility extends to assuring independent review of actions so that individuals responsible for initiating an action do not approve the action; and, establishing processes, policies, and procedures for contract actions performed by the Site Office, including review and approval of contract actions at the Site Office. 2. For contract actions over which they have cognizance, perform the duties specified in applicable acquisition regulations as being performed at a level above the Contracting Officer but that are below the level of the HCA. D. Office of Chief Counsel, NNSA Service Center and Office of General Counsel, NNSA HQ will coordinate all legal, financial, and patent input, to ensure the initiator is provided one comprehensive set of advisory comments. 4 E. Contracting Officers will: I. Ensure that contract actions are reviewed, coordinated and approved in accordance with this Policy Letter. 2. Plan the solicitation, evaluation, and award of contract actions in a manner that precludes the need for expedited coordination and approval. 4. Ensure resolution of comments. 5. For subcontracts requiring HCA approval, ensure documentation equivalent to that required for Federal acquisitions is provided to the HCA and reviewers. 6. Ensure that contract and financial assistance actions requiring HQ approval have been fully coordinated through appropriate H Q functional experts as necessary prior to submission to the HCA or Senior Procurement Executive (SPE). Subject areas requiring HQ function coordination include, but are not limited to: a. contract law, b. financial assistance law, c. appropriations law, d. intellectual property, e. real and personal property, f. contractor human relations, g. small business issues, h. environmental, safety and health (ES&H), i. National Environmental Policy Act (NEPA), j. Department of Energy (DOE) special authorities, e.g., barter, loan guarantees, etc., and k. NNSA implementation of DOE Order 413.3 "Program and Project Management for the Acquisition of Capital Assets," or successor Order, as applicable. V. POINT OF CONTACT FOR ADMINISTRATION OF THE POLICY LETTER: Deputy Director, Office of Acquisition and Supply Management (NA-63), at 202· 586-6681. BY ORDER OF THEADMINISTRATO~!) () David 0. Boyd ~ Senior Procurement Executive National Nuclear Security Administration Exhibits: RevisionS 5 1. Headquarters Approval of Contract Actions Table 2. HQ Review or Approval Document Revision 5 6 EXHIBIT 1 HEADQUARTERS APPROVAL OF CONTRACT ACTIONS TABLE 1 ACTION CODES: A- Approval C - Review & Comment S - Signature "' "' 8 ~ ~ ~ § ~ ~ -~~ ~ g c ·,:::: c ~ .-,: .. ~ !;: "' "0 :< ·;; ~ .# s: z B _. ~ o "' N- Notification u o..g ~~ :U1 eQ ;~ -~- ~, Numbers beside the letters (e.g., Cl, A2) o ., "" ~ , ~ > ~ .. ., .-. " 8 B r::~ , ;:J I 'o .£ ~ ·- .i'::.• ·a c » reflect order in which to accomplish actions. ... u ~ ~ ~ ,. 1 s '5 ,. ·- , ·- ~. ~umberswithinparenthesis,e.g.(l)indicate ,~ 0'-o ...( :<f ~' , ] '£ 'iS ~ ~.g: .g _ ~·n=o~t~es~w~h7ic~h~a~re~Jw~m=e~d~a~t~th=e~oo~d~o~f~th~•c_t~ab~l=e~.+-y--~::r: __ ..: __ r-zj~ . o __ ~~--::r:_..: __ -41-~--~-~--~~--..: __ ~1'_..: __ +-..:~ Designation of Source Selection Authority I ' i >$25M : ACII J. A2 1: Major Facilities 1 , . 1

. Solicitations for GSA Schedule Buys- Best j I' 1· . Value: >$25M ' AI ' Source Selection Decision for GSA ! I I I ScheduleBuys-BestValue: >$25M Cl Written Acquisition Plans: >$25M A I ' : Justifications for Other Than Full & Open I I I I Competition (FAR 6.3) I 1 >$25M to $50M Cl 1 . 1 A2 1 . AJ I >$50M Cl C2 ISmail Business Waivers (Non-M&O) I !,i 1· I >$1 M-:S$3M I I Cl ; C2 C3 I >$3M · Cl C2 ' C3 C4 Ismail Business Review (DOE Form 4220.2) I >$3M I *if not reserved exclusively for small business 1 * * Delegated to the NNSA Field SBPM, in , . his absence must be sign by the Hdqrs Comp I Advocate Draft and Final Solicitations & Amendments (Non-M&O): >$25M (1) • Source Selection Plan must accompany the final solicitation for competitive source selection actions, unless otherwise d to b the HCA Mistakes in Bid: >$25M Mistakes in Bid, After Award (FAR 14.407- 4 & 33.2 OCI Waiver>$25M Cl*,** f2* ! AI* • AI Pre-Negotiation Plans (3): >$25M A I j AS I Letter Contract ~-w __ n_tt_e_n ____________ ...J_ __ --'-------'--c----'---~.:.A::.:lc__ __ _,_ ____ .....:.. ____ ...L __ ~ __ ...J Revision 5 1 ACTION CODES: A - Approval C - Review & Comment S - Signature N- Notification Numbers beside the letters (e.g., Cl, A2) : reflect order in which to accomplish actions. I Numbers within parenthesis, e.g. (I) indicate ~otes which are located at the end of the table. r.::==::=~-'-':'c=..:..::.:.::..::.::.-=:.L~"-L---t---t-··-+---L-C....... __ ,~--l ·~-+--+---1 • determination (FAR 16.603-3 (2) I' Agency Level Protest Decision ( 4) : 81 · Decision to Continue with A ward or · Cl A2 (5) Penonnance I Corrective Relief I t-i A_1_--+1• 1 ~. ·--+-----t-1-, --i GAO Level Protest ! · Agency Report Nl N2 I Decision to Continue with Award or II L ' I : • Penonnance -,---+· --+-~·- -+-' _, 1 ..=Sc:.3 _ __J.I~Ac:.:l_--t-" GS'-'-)--'--'-' 1Ac::.2-+---i Modifications (Non M&O) -_Other than I · • I funding, in excess of $25M or causing the I ! I I • contract value to he >$25M I A 1 :--=:=:=_,;==.=-=...:::.::...__::::::::.=_---,--,-,-- -+-1--+··--+- -t-'-'-'--+---t---r-~ ·- Terminations (complete or partial) & I Settlement Review Boards (SRBs) (Non . M&O) (FAR 49) 12>$10 M to $25M ~>$25M 1 Extraordinary Contractual Actions I Indemnification under PL 85-804 (FAR · Part 50) I Cl ! I <$50K I i I >$50K · Cl • Waiver Required for Submission of Cost or I I Pricin2 Data: >$25M 1 • Waive Inclusion of FAR 52.223-13: >:-:$-=2-=-SM'-'-~--; I Pre:.Contract Costs- period greater than I 15 days (F AR31.205-32 and DEAR 931.205- 32): >$25M Ratifications: >$25K ' Subcontract Consents (FAR 44.2) Required Subcontract Consents (Non-M&O) I Nl N2(6) I i AI I N2(6) I 1 C2 A4 C3 C2 C3 C4 C5 I A6 I I AI I ! : : I AI I Cl : A2 >$25M AI I ~P~u~rc~h~a~s,~.n~g~S~y-ste_m_A~p_p_ro_v~ab~(M~&~O~)~---t--+---r---~-~. C~lr--~i.~----t~--r, ---t--t Subcontract Consents (M&0)(7) Exceeding 1 1 i I Site Approval Threshold (8) or of an Unusual Nature: >$25M I . Al I I i Determination of Non-Competitive Revision 5 2 ACTION CODES: A- Approval C- Review & Comment S - Signature N - Notification Numbers beside the letters (e.g., Cl, A2) reflect order in which to accomplish actions. Numbers witbin parenthesis, e.g. (I) indicate notes which are located at tbe end of the table . . Financial Assistance (9): >$1M " "' "' ::> I 0 u I ] " "' i " " . . "' "' 1l ·u; ... "' .s "' 0() .g " = ;; ·;:: ' 8., s:::E I E ;; "" E 8 g "" ~ ! "' 0~ •eiJ < 12 I ;:I:< Zi!i-

i I Finandal Assistance Solicitations and I Awards: >$25M I 1 1 ', .... I ···--"----1 Utility Procurement Plans 1 l 0 iil ~ ... l "' 0 2 ..::~ " b :I: 0 "' "' ' ?;>·a :s ,... I ::> ·~ " o.E .g il ! "'""' eJJ O< < < 'A3 i ' i C2 I I i (10) (Includes draft contracts regardless of dollar 1. i _j. . value ortype )(FAR 41 ): >$25M ..• -:::-:-;;:--;--i--j• I Interagency Agreements- Fund~-Out Only 1.· I ··---+--+----+---.j..[i ""-':.L+-+--'1. >$25M(ll) . (I) If an amendment makes significant changes to tbe acquisition strategy, or any changes to Sections L and M of tbe solicitation, review is required in accordance witb (!A W) tbe CAP. Otherwise, no review is required above the level of the Contracting Officer. (2) Letter contract definitization follows the same review as other contracts (3) Task or delivery orders against priced master contracts are exempt. New task or delivery orders awarded against unpriced basic contracts follow the same review requirements as new contract actions. (4) Protest decided by the Senior Procurement Executive: -Protester requests decision by the Procurement Executive - HCA is the Contracting Officer at the time the protest is filed, having signed either the solicitation where tbe award has not been made, or the contract, where the award or nomination of the apparent successful offeror has been made; or - HCA concludes that one or more ofthe issues raised in tbe protest have tbe potential for significant impact on NNSA acquisition policy. (5) Endorsement required by Deputy or Associate Administrator. (6) IA W DEAR 949.101, the Senior Procurement Executive shall be notified prior to taking any action to terminate (a) contracts for the operation of Government owned facilities, (b) any prime contract or subcontract in excess of$10M, and (c) any contract tbe termination of which is likely to provoke unusual interest. (7) Actions taken on or regarding a M&O contract that require Headquarters review and/or approval shall be coordinated with the M&O Support Department in the Office of Business Services prior to submission to Headquarters. (8) A Subcontract that exceeds tbe Site approval level, or a modification that causes the subcontract value to exceed tbe Site approval tbreshold or increases the subcontract value by 20% or more. The threshold for each Site is set by the Senior Procurement Executive. Revision 5 3 (9) If the authority being cited is 10 CFR 600.6(c)(&), public interest, the DNFA must be approved by the responsible Program Assistant Secretary, Deputy Administrator, or other equivalent authority. If this is the case, the review procedures for greater than $1M must be used. (10) HQ Office of Defense Programs (NA-10) is the Deputy Administrator for all utility acquisitions. Utility acquisitions requiring NA-1 0 approval must go through the Assistant Deputy Administrator for Facility and Infrastructure, Acquisition and Operation (NA-17). (11) If the basic interagency agreement was reviewed in accordance with this document, review of individual modifications is not required unless the modification adds new work not contemplated in the original award. If the basic award was not reviewed in accordance with this, a review of an individual modification, to include the basic award, will serve as the required review of the entire award. Revision 5 4 Exhibit 2 NNSA N&.'S/4. .. , ______________ ---:;;;,;o;-;; REVIEW OR APPROVAL DOCUMENT TITLE OF DOCUMENT: [Example: New Support Services Contract in support of the XYZ Program, NA-10] DESCRIPTION: [Example: Pre-negotiation Plan ] Contract Specialist or Contracting Officer Signature: Contracting Officer A1 Independent Review C2 : Office of Council/General Council C3 Head of the Contracting Activity A4 Senior Procurement Executive Deputy or Associate Administrator Administrator Agency Head Document No. . Modification/Amendment Number Organization/Department: Division (If applicable): POC Name and Telephone Number: YesD NoD YesD NoD YesD NoD YesD NoD YesD NoD i YesD NoD YesD NoD YesD NoD YesD NoD LEGEND FOR ORDER: The numbers reflect the order in which to accomplish the review and coordination. C-Coordination: review and comment A-Approval: affixes signature as the approving official S-Signature: signs/executes the document 412007 Revision 5 5