Mandatory Procedure |
MP5317.78
Special Contracting Methods
June 2006
MP5317.78 Proper Use of Non-DoD Contracts
(a) Applicability and Definitions:
(1) These procedures apply to the use of non-DoD contract vehicles for all acquisitions of supplies or services above the Simplified Acquisition Threshold (SAT), other than procurements of the following services:
(A) Printing, binding, or blank-book work to which 44 U.S.C. 502 applies: and
(B) Services available under programs pursuant to 2 U.S.C. 182c (section 103 of the Library of Congress Fiscal Operations Improvement Act of 2000 (Public Law 106-481)).
(2) Direct Acquisition - a task or delivery order placed by an Air Force official against a contract vehicle established outside the DoD.
(3) Assisted Acquisition - a contract awarded or task or delivery order placed on behalf of DoD by an official of the United States outside DoD.
(b) Direct Acquisition of Supplies - For all direct acquisition orders of supplies placed against non-DoD contracts (including GSA Federal Supply Schedule (FSS) Orders), and for each Blanket Purchase Agreement issued against a GSA FSS, the Program Manager, Project Manager (for Medical Treatment Facilities (MTF), the Medical Logistics Flight Commander, requirement initiator (as appropriate), or the Contracting Officer must document the contract file to reflect:
(1) The order is in the best interest of the Air Force. Consider such factors as satisfying customer requirements, cost effectiveness and price, delivery schedule, non-availability of a suitable contract within DoD, contract administration, small business opportunities, and any other factors as applicable.
(2) The supplies to be provided are within the scope of the basic contract.
(3) Funding is available and appropriate for the acquisition. The financial management organization shall validate that the funds are appropriate for the acquisition.
(4) Any terms, conditions and requirements unique to DoD or the Air Force are incorporated into the order to comply with applicable statutes, regulations and directives (e.g. the requirement that the items listed in DFARS 225.7002-1 and procured with DoD funds be of domestic origin, unique identification requirements, etc.).
(5) Certify that procedures above have been followed.
(c) Assisted Acquisition of Supplies - The requiring organization (for the Air Force medical service at local level the Medical Logistics Flight Commander, and at Air Staff level, the Chief, Procurement Services at the Air Force Medical Logistics Office) shall coordinate with their servicing Air Force contracting and financial management organization on all supplies requirements proposed for award by non-DoD organizations using Air Force funds. The contracting organization shall advise the requiring organization as to the various contractual options available to obtain the supplies and any DoD terms and conditions that must be incorporated into the resultant order or contract. The requiring organization shall document the following:
(1) Use of a non-DoD contract is in the best interest of the Air Force considering the factors of satisfying customer requirements, cost effectiveness and price, delivery schedule, non-availability of a contract within DoD, contract administration, and any other factors as applicable.
(2) The supplies to be provided are within the scope of the contract to be used. Coordinate with the non-DoD Contracting Officer to verify the requirement is within the scope of the assisting agency’s selected contract.
(3) Funding is available and appropriate for the acquisition. The financial management organization shall validate that the funds are appropriate for the acquisition.
(4) Any terms, conditions and requirements unique to DoD or the Air Force that must be incorporated into the resultant order or contract to comply with applicable statutes, regulations and directives (e.g. the requirement that the items listed in DFARS 225.7002-1 and procured with DoD funds be of domestic origin, unique identification requirements, etc.)
(5) Certify that procedures above have been followed.
(d) For interagency acquisitions subject to Economy Act (31 U.S.C. 1535), comply with the D&F requirements at FAR 17.503. A sample D & F template for Economy Act transactions is contained at AFFARS IG5317.5. Note - Assisted Acquisitions by GSA are authorized by other statutes, e.g. Federal Property and Administrative Services Act, Clinger-Cohen Act, Etc, and are not subject to the Economy Act, so no Economy Act D & F is needed. Similarly, health care supplies and equipment purchased under sharing agreements between the Air Force and the Veterans Administration pursuant to 38 U.S.C. 8111 are not subject to the Economy Act and no Economy Act D & F is needed (although other procurement laws and regulations still apply.)
(e) Direct Acquisition of Services - The Contracting Officer must ensure compliance with AFFARS 5337.170-3(a), Approval Requirements, for all orders of services placed against non-DoD contracts. The Program Manager, Project Manager (for Medical Treatment Facilities (MTFs), the Medical Logistics Flight Commander), requirement initiator (as appropriate) or the Contracting Officer must document the contract file to reflect:
(1) The order is in the best interest of the Air Force. Consider such factors as satisfying customer requirements, cost effectiveness and price, delivery schedule, non-availability of a suitable contract within DoD, contract administration, small business opportunities, and any other factors as applicable.
(2) The services to be provided are within the scope of the basic contract.
(3) Funding is available and appropriate for the acquisition. The financial management organization shall validate that the funds are appropriate for the acquisition.
(4) Any terms, conditions and/or requirements unique to DoD are incorporated into the order to comply with applicable statutes, regulations and directives (e.g. the requirement that the items listed in DFARS 225.7002-1 and procured with DoD funds be of domestic origin, unique identification requirements, etc.)
(5) Certify that procedures above have been followed.
(f) Assisted Acquisition of Services - Ensure compliance with AFFARS 5337.170-3, Approval Requirements, for all services requirements that are proposed for award by non-DoD organizations using Air Force funds. AFFARS 5337.170-3 (b) requires the Services Designated Official (SDO) to approve any services acquisition request to be purchased using a contract or task order being awarded by an agency other than DoD. Additionally, the requiring organization shall coordinate with their servicing Air Force contracting and financial management organization. The contracting organization shall advise the requiring organization as to the various contractual options available to obtain the services and any DoD terms and conditions that must be incorporated into the resultant order or contract. The requiring organization shall then document the following in the acquisition plan or in a MFR:
(1) Use of a non-DoD contract is in the best interest of the Air Force considering the factors of satisfying customer requirements, cost effectiveness and price, delivery schedule, non-availability of a contract within DoD, contract administration, and any other factors as applicable.
(2) The services to be provided are within the scope of the contract to be used. Coordinate with the non-DoD Contracting Officer to verify the requirement is within the scope of the assisting agency’s selected contract.
(3) Funding is available and appropriate for the acquisition. The financial management organization shall validate that the funds are appropriate for the acquisition.
(4) Any terms, conditions and/or requirements unique to DoD that must be incorporated into the resultant order or contract to comply with applicable statutes, regulations and directives (e.g. the requirement that the items listed in DFARS 225.7002-1 and procured with DoD funds be of domestic origin, unique identification requirements, etc.)
(5) Certify that procedures above have been followed.
The Program Manager, Project Manager or requirement initiator (as appropriate) for the acquisition must sign the MFR or acquisition plan. The financial management organization shall then accomplish a validation review to ensure the appropriation is correct for the acquisition. The SDO must approve the MFR or acquisition plan prior to transmittal of the requirement and funding document outside the Air Force to the non-DoD agency. Provide a copy of the MFR to the assisting agency.
For interagency acquisitions subject to Economy Act (31 U.S.C. 1535), comply with the D&F requirements at FAR 17.503. Assisted acquisitions by GSA are authorized by other statutes and are not subject to the Economy Act. A sample D&F template is contained at AFFARS IG5317.5. Note - this template could also be modified for use as a MFR to document the proper use of non-DoD contracts.