Sign In
  • Question

    Should I brief to the clearance authority based on the combined value or only the value of the modification? Modification value would fall into the $5M to $25M authority OR the combined value would fall into the $25 to $50M authority.


    Answer

    I encourage you to ask your local policy office or legal office --they will be able to give you a definitive answer based on your local guidance.
     
    Having said that I concur that it is not intuitively obvious, when you look at the regulations, whether the business clearance review threshold is based on the revised total value of the contract or the total value of the modification.  However, my answer is that it should be the based on the new total value of the contract not just the value of the modification. Here are the resources I consulted:
     
    See  FAR 1.108 FAR Conventions, paragraph (c) which states the following: Dollar thresholds. Unless otherwise specified, a specific dollar threshold for the purpose of applicability is the final anticipated dollar value of the action, including the dollar value of all options. If the action establishes a maximum quantity of supplies or services to be acquired or establishes a ceiling price or establishes the final price to be based on future events, the final anticipated dollar value must be the highest final priced alternative to the Government, including the dollar value of all options.
     
    In AFFARS 5301.9001 the threshold Clearance Approval Authority tables provided under paragraph (f) have a column heading of “Contract Value” and do not specify modification value.  Your new contract value is >$25M. In addition, under paragraph AFFARS 5301.9001 (a)(3) states that the objectives of the clearance process are to ensure that the action is consistent with laws, regulations and policies – given the nature of this modification and the significant change in contract value and potentially a question of scope, it would be prudent to take a conservative approach to the review thresholds and use the new contract value.
     


    Open full Question Details