Overview
FAR 6.304 establishes the specific approval hierarchy and signature requirements for "Justification and Approval" (J&A) documents when a contract is awarded using other than full and open competition. It dictates that the level of oversight and seniority required for approval increases proportionally with the estimated dollar value of the procurement.
Key Rules
- Approval Thresholds (Standard):
- Under $900,000: The Contracting Officer’s certification serves as the approval.
- $900,000 to $20 Million: Must be approved by the Advocate for Competition for the procuring activity (non-delegable).
- $20 Million to $90 Million: Must be approved by the Head of the Procuring Activity (HPA) or a high-ranking designee (General/Flag Officer or SES level).
- Over $90 Million: Must be approved by the agency’s Senior Procurement Executive (non-delegable, except for the DoD Under Secretary of Defense for Acquisition and Sustainment).
- Agency-Specific Thresholds (DoD, NASA, Coast Guard): The HPA approval level extends up to $150 million, with the Senior Procurement Executive required for actions exceeding $150 million.
- Public Interest Exception: Justifications using the "Public Interest" authority (FAR 6.302-7) are considered approved once the specific statutory determination is made, regardless of the dollar amount.
- Valuation Strategy: The estimated dollar value used to determine the approval level must include the value of all contract options.
- Class Justifications: Approval levels for a class of contracts are based on the total estimated value of the entire class.
Practical Implications
- Lead Time Planning: High-value sole-source contracts require significant lead time because the J&A must be routed through several layers of senior management, often reaching the agency’s highest-ranking procurement officials.
- Strategic Scoping: Because the value of all options must be included, a small annual requirement can trigger a high-level (and potentially more rigorous) approval process if the contract includes multiple option years.
- Accountability: The non-delegable nature of approvals for mid-to-high-tier acquisitions ensures that senior officials remain personally accountable for the decision to bypass the standard competitive process.