MIL-HDBK-1390
CONTRACTING GUIDANCE
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6.1
Contracting for LORA. The following paragraphs provide information and guidance on the
contracting process associated with developing and executing a LORA program. A LORA program may be a small,
but important element in the total acquisition of a system, or it may be the focal element of the acquisition.
Regardless of the type of acquisition or the life cycle phase, the LORA contracting process has the following three
phases.
6.1.1 Planning and pre-solicitation. This is the phase in which the functional area expert identifies the need
for the LORA effort and confirms that contracting is the appropriate method of satisfying the need. The functional
area expert develops and coordinates the contracting package and forwards the contracting package from the
functional office of responsibility to the contracting office to initiate the contracting process.
6.1.2 Solicitation and award. This is the contracting process for the acquisition of the materiel or services
specified in the contracting package. Normally a RFP is publicized using the documentation in the contracting
package to communicate the requirements to industry. Contracting candidates then submit written package
proposals stating how the requirements in the RFP will be satisfied. It should be noted that depending on how the
contracting package is written, the proposals submitted could actually include a LORA plan, a LORA report, or
LORA input data in order to consider and analyze maintenance and support costs of the proposed system in the
evaluation of the candidate's proposal. Then, a technical evaluation is conducted on the proposals to determine
which one best meets needs of the requiring authority. Based on this evaluation, a contract is awarded. If formal
advertising for competitive acquisition is not appropriate, then the supplies or services may be procured through the
use of negotiation (i.e., sole source acquisition) in accordance with the Federal Acquisition Regulation (FAR).
6.1.3 Post award administration. This phase exercises and completes the management and performance of
the contract. This includes the test/review and acceptance of all contract deliverables. The contracting process and
contract requirements undertaken in the different life cycle phases of the materiel acquisition process will vary and
are dependent on the type of acquisition effort.
Contracting package.
6.2
6.2.1 SOW, DID, and CDRL. The three primary parts of the contracting package that an IPS manager
should be concerned with are the SOW, DID, and CDRL. It should be noted there is no standard prescribed format
for a SOW. However, MIL-HDBK-502A does provide guidance and example formats for SOWs. There are four
major areas of information which must be addressed in a SOW: the tasks and technical requirements to be
performed; method by which performance of those tasks will be measured and tested; technical data to be delivered;
and management of the data to be delivered. Reference to a DID or exhibit is made in the SOW to tie a task
description to a deliverable product and its contents. Also, a reference is made in the SOW to the CDRL to tie the
deliverable product to a time schedule for delivery. The ideal method of preparing a SOW is to refer to a standard
for each functional element required, in this case, SAE AS1390. Tailoring the effort then becomes a matter of
identifying only certain sections or paragraphs of the standard to be performed. Tailoring also includes addressing
sections of DIDs that apply to the contract deliverable desired.
6.2.2 Execution of the LORA program with a LORA model. As discussed in Paragraph 4.4.1, a LORA
program can be performed in one of three ways. When a LORA model is to be utilized as part of the LORA
program, the SOW should be written to obtain the input data (i.e., LORA source data) for that particular model.
This LORA model data will assist with future LORA evaluations and sensitivity evaluations. It should be noted that
LORA source data should only be cited in a SOW if it cannot be provided by other contract deliverables (e.g., LPD,
SAE GEIA-STD-0007, or other analysis reports) in a timely manner for use in the LORA. Obtaining LORA source
data by citing the data elements required to do a LORA in a SOW is a special case that should generally be used
only when the requiring authority performs the LORA organically.
Detailed contracting guidance. Additional information and guidance for contracting can be found in
6.3
Section 6 of MIL-HDBK-502A. This section discusses suggested SOW and RFP language, acquisition and business
strategies, CDRL examples, special contract language, and instructions for bidders.
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