[Title 48 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 2005 Edition]
[From the U.S. Government Printing Office]
[[Page i]]
48
Chapter 2 (Parts 201 to 299)
Revised as of October 1, 2005
Federal Acquisition Regulations System
________________________
Containing a codification of documents of general
applicability and future effect
As of October 1, 2005
With Ancillaries
Published by
Office of the Federal Register
National Archives and Records
Administration
A Special Edition of the Federal Register
[[Page ii]]
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[[Page iii]]
Table of Contents
Page
Explanation................................................. v
Title 48:
Chapter 2--Department of Defense 3
Finding Aids:
Table of CFR Titles and Chapters........................ 633
Alphabetical List of Agencies Appearing in the CFR...... 651
List of CFR Sections Affected........................... 661
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Cite this Code: CFR
To cite the regulations in
this volume use title,
part and section number.
Thus, 48 CFR 201.104
refers to title 48, part
201, section 104.
----------------------------
[[Page v]]
EXPLANATION
The Code of Federal Regulations is a codification of the general and
permanent rules published in the Federal Register by the Executive
departments and agencies of the Federal Government. The Code is divided
into 50 titles which represent broad areas subject to Federal
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parts covering specific regulatory areas.
Each volume of the Code is revised at least once each calendar year
and issued on a quarterly basis approximately as follows:
Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1
The appropriate revision date is printed on the cover of each
volume.
LEGAL STATUS
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HOW TO USE THE CODE OF FEDERAL REGULATIONS
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EFFECTIVE AND EXPIRATION DATES
Each volume of the Code contains amendments published in the Federal
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OMB CONTROL NUMBERS
The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires
Federal agencies to display an OMB control number with their information
collection request.
[[Page vi]]
Many agencies have begun publishing numerous OMB control numbers as
amendments to existing regulations in the CFR. These OMB numbers are
placed as close as possible to the applicable recordkeeping or reporting
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OBSOLETE PROVISIONS
Provisions that become obsolete before the revision date stated on
the cover of each volume are not carried. Code users may find the text
of provisions in effect on a given date in the past by using the
appropriate numerical list of sections affected. For the period before
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1963, 1964-1972, 1973-1985, or 1986-2000, published in 11 separate
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the revision dates of the 50 CFR titles.
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[[Page vii]]
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Raymond A. Mosley,
Director,
Office of the Federal Register.
October 1, 2005.
[[Page ix]]
THIS TITLE
Title 48--Federal Acquisition Regulations System is composed of
seven volumes. The chapters in these volumes are arranged as follows:
Chapter 1 (parts 1 to 51), chapter 1 (parts 52 to 99), chapter 2 (parts
201 to 299), chapters 3 to 6, chapters 7 to 14, chapters 15 to 28 and
chapter 29 to end. The contents of these volumes represent all current
regulations codified under this title of the CFR as of October 1, 2005.
The Federal acquisition regulations in chapter 1 are those
government-wide acquisition regulations jointly issued by the General
Services Administration, the Department of Defense, and the National
Aeronautics and Space Administration. Chapters 2 through 99 are
acquisition regulations issued by individual government agencies. Parts
1 to 69 in each of chapters 2 through 99 are reserved for agency
regulations implementing the Federal acquisition regulations in chapter
1 and are numerically keyed to them. Parts 70 to 99 in chapters 2
through 99 contain agency regulations supplementing the Federal
acquisition regulations.
The OMB control numbers for the Federal Acquisition Regulations
System appear in section 1.106 of chapter 1. For the convenience of the
user section 1.106 is reprinted in the Finding Aids section of the
second volume containing chapter 1 (parts 52 to 99).
The first volume, containing chapter 1 (parts 1 to 51), includes an
index to the Federal acquisition regulations.
For this volume, Ruth Green was Chief Editor. The Code of Federal
Regulations publication program is under the direction of Frances D.
McDonald, assisted by Alomha S. Morris.
[[Page 1]]
TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
(This book contains chapter 2, parts 201 to 299)
--------------------------------------------------------------------
Part
chapter 2--Department of Defense............................ 201
[[Page 3]]
CHAPTER 2--DEPARTMENT OF DEFENSE
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SUBCHAPTER A--GENERAL
Part Page
201 Federal Acquisition Regulations System...... 7
202 Definitions of words and terms.............. 12
203 Improper business practices and personal
conflicts of interest................... 14
204 Administrative matters...................... 16
SUBCHAPTER B--ACQUISITION PLANNING
205 Publicizing contract actions................ 42
206 Competition requirements.................... 43
207 Acquisition planning........................ 46
208 Required sources of supplies and services... 51
209 Contractor qualifications................... 66
211 Describing agency needs..................... 72
212 Acquisition of commercial items............. 77
SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
213 Simplified acquisition procedures........... 82
214 Sealed bidding.............................. 86
215 Contracting by negotiation.................. 86
216 Types of contracts.......................... 106
217 Special contracting methods................. 117
SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
219 Small business programs..................... 137
222 Application of labor laws to government
acquisitions............................ 149
223 Environment, conservation, occupational
safety, and drug-free workplace......... 162
224 Protection of privacy and freedom of
information............................. 168
225 Foreign acquisition......................... 168
226 Other socioeconomic programs................ 205
SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
227 Patents, data, and copyrights............... 209
228 Bonds and insurance......................... 250
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229 Taxes....................................... 252
230 Cost accounting standards administration.... 254
231 Contract cost principles and procedures..... 257
232 Contract financing.......................... 261
233 Protests, disputes, and appeals............. 275
SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
234 Major system acquisition.................... 276
235 Research and development contracting........ 276
236 Construction and architect-engineer
contracts............................... 279
237 Service contracting......................... 285
239 Acquisition of information technology....... 296
241 Acquisition of utility services............. 305
SUBCHAPTER G--CONTRACT MANAGEMENT
242 Contract administration and audit services.. 308
243 Contract modifications...................... 323
244 Subcontracting policies and procedures...... 325
245 Government property......................... 326
246 Quality assurance........................... 349
247 Transportation.............................. 357
249 Termination of contracts.................... 367
250 Extraordinary contractual actions........... 374
251 Use of government sources by contractors.... 379
SUBCHAPTER H--CLAUSES AND FORMS
252 Solicitation provisions and contract clauses 380
253 Forms....................................... 532
[[Page 5]]
SUBCHAPTER I--AGENCY SUPPLEMENTARY REGULATIONS
Appendix A--Armed Services Board of Contract
Appeals................................. 565
Appendix B--Coordinated Acquisition
Assignments............................. 574
Appendix C [Reserved]
Appendix D--Component Breakout.............. 584
Appendix E--DoD Spare Parts Breakout Program 586
Appendix F--Material Inspection and
Receiving Report........................ 606
Appendix G [Reserved]
Appendix H--Debarment and Suspension
Procedures.............................. 621
Appendix I--Policy and Procedures for the
DOD Pilot Mentor-Protege Program........ 623
Note: Although the text of Manuals and Supplements to the Defense FAR
Supplement are not published in the Code of Federal Regulations, they
were listed for the convenience of the user. All of the Supplements have
been deleted. The only manuals which remain in effect are: Armed
Services Pricing Manual (1986) and Armed Services Pricing Manual, Volume
2, Price Analysis (1987).
[[Page 7]]
SUBCHAPTER A_GENERAL
PART 201_FEDERAL ACQUISITION REGULATIONS SYSTEM--Table of Contents
Subpart 201.1_Purpose, Authority, Issuance
Sec.
201.104 Applicability.
201.105 Issuance.
201.105-3 Copies.
201.107 Certifications.
Subpart 201.2_Administration
201.201 Maintenance of the FAR.
201.201-1 The two councils.
201.201-70 Maintenance of Procedures, Guidance, and Information.
Subpart 201.3_Agency Acquisition Regulations
201.301 Policy.
201.303 Publication and codification.
201.304 Agency control and compliance procedures.
Subpart 201.4_Deviations From the FAR
201.402 Policy.
201.403 Individual deviations.
201.404 Class deviations.
Subpart 201.6_Contracting Authority and Responsibilities
201.602 Contracting officers.
201.602-2 Responsibilities.
201.602-70 Contract clause.
201.603 Selection, appointment, and termination of appointment.
201.603-2 Selection.
201.603-3 Appointment.
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36284, July 31, 1991, unless otherwise noted.
Subpart 201.1_Purpose, Authority, Issuance
Sec. 201.104 Applicability.
The FAR and the Defense Federal Acquisition Regulation Supplement
(DFARS) also apply to purchases and contracts by DoD contracting
activities made in support of foreign military sales or North Atlantic
Treaty Organization cooperative projects without regard to the nature or
sources of funds obligated, unless otherwise specified in this
regulation.
[56 FR 36284, July 31, 1991. Redesignated at 64 FR 39430, July 22, 1999]
Sec. 201.105 Issuance.
Sec. 201.105-3 Copies.
The DFARS and the DFARS Procedures, Guidance, and Information (PGI)
are available electronically via the World Wide Web at http://
www.acq.osd.mil/dpap/dars/index.htm.
[69 FR 63326, Nov. 1, 2004]
Sec. 201.107 Certifications.
In accordance with Section 29 of the Office of Federal Procurement
Policy Act (41 U.S.C. 425), a new requirement for a certification by a
contractor or offeror may not be included in the DFARS unless--
(1) The certification requirement is specifically imposed by
statute; or
(2) Written justification for such certification is provided to the
Secretary of Defense by the Under Secretary of Defense (Acquisition,
Technology, and Logistics), and the Secretary of Defense approves in
writing the inclusion of such certification requirement.
[63 FR 11528, Mar. 9, 1998, as amended at 65 FR 39704, June 27, 2000]
Subpart 201.2_Administration
Sec. 201.201 Maintenance of the FAR.
Sec. 201.201-1 The two councils.
(c) The composition and operation of the DAR Council is prescribed
in DoDI 5000.63, Defense Acquisition Regulations (DAR) System.
(d)(i) Departments and agencies process proposed revisions of FAR or
DFARS through channels to the Director of the DAR Council. Process the
proposed revision as a memorandum in the following format, addressed to
the Director, DAR Council, OUSD(AT&L), 3062 Defense Pentagon,
Washington, DC 20301-3062; datafax (703) 602-0350:
[[Page 8]]
I. PROBLEM: Succinctly state the problem created by current FAR and/
or DFARS coverage and describe the factual and/or legal reasons
necessitating the change to the regulation.
II. Recommendation: Identify the FAR and/or DFARS citations to be
revised. Attach as TAB A a copy of the text of the existing coverage,
conformed to include the proposed additions and deletions. Indicate
deleted coverage with dashed lines through the current words being
deleted and insert proposed language in brackets at the appropriate
locations within the existing coverage. If the proposed deleted portion
is extensive, it may be outlined by lines forming a box with diagonal
lines drawn connecting the corners.
III. Discussion: Include a complete, convincing explanation of why
the change is necessary and how the recommended revision will solve the
problem. Address advantages and disadvantages of the proposed revision,
as well as any cost or administrative impact on Government activities
and contractors. Identify any potential impact of the change on
automated systems, e.g., automated financial and procurement systems.
Provide any other background information that would be helpful in
explaining the issue.
IV. Collaterals: Address the need for public comment (FAR 1.301(b)
and subpart 1.5), the Paperwork Reduction Act, and the Regulatory
Flexibility Act (FAR 1.301(c)).
V. Deviations: If a recommended revision of DFARS is a FAR
deviation, identify the deviation and include under separate TAB a
justification for the deviation that addresses the requirements of
201.402(2). The justification should be in the form of a memorandum for
the Director of Defense Procurement and Acquisition Policy, Office of
the Under Secretary of Defense (Acquisition, Technology, and Logistics).
(ii) The public may offer proposed revisions of FAR or DFARS by
submission of a memorandum, in the format (including all of the
information) prescribed in paragraph (d)(i) of this subsection, to the
Director of the DAR Council.
[56 FR 36284, July 31, 1991, as amended at 60 FR 61591, Nov. 30, 1995;
61 FR 50451, Sept. 26, 1996; 63 FR 11528, Mar. 9, 1998; 65 FR 6552, Feb.
10, 2000; 68 FR 7439, Feb. 14, 2003]
Sec. 201.201-70 Maintenance of Procedures, Guidance, and Information.
The DAR Council is also responsible for maintenance of the DFARS
Procedures, Guidance, and Information (PGI).
[69 FR 63326, Nov. 1, 2004]
Subpart 201.3_Agency Acquisition Regulations
Sec. 201.301 Policy.
(a)(1) DoD implementation and supplementation of the FAR is issued
in the Defense Federal Acquisition Regulation Supplement (DFARS) under
authorization and subject to the authority, direction, and control of
the Secretary of Defense. The DFARS contains--
(i) Requirements of law;
(ii) DoD-wide policies;
(iii) Delegations of FAR authorities;
(iv) Deviations from FAR requirements; and
(v) Policies/procedures that have a significant effect beyond the
internal operating procedures of DoD or a significant cost or
administrative impact on contractors or offerors.
(2) Relevant procedures, guidance, and information that do not meet
the criteria in paragraph (a)(1) of this section are issued in the DFARS
Procedures, Guidance, and Information (PGI).
(b) When Federal Register publication is required for any policy,
procedure, clause, or form, the department or agency requesting Under
Secretary of Defense (Acquisition, Technology, and Logistics) (USD
(AT&L)) approval for use of the policy, procedure, clause, or form (see
201.304(1)) must include an analysis of the public comments in the
request for approval.
[56 FR 36284, July 31, 1991, as amended at 60 FR 61591, Nov. 30, 1995;
65 FR 6552, Feb. 10, 2000; 69 FR 63326, Nov. 1, 2004]
Sec. 201.303 Publication and codification.
(a)(i) The DFARS is codified under chapter 2 in title 48, Code of
Federal Regulations.
(ii) To the extent possible, all DFARS text (whether implemental or
supplemental) is numbered as if it were implemental. Supplemental
numbering is used only when the text cannot be integrated intelligibly
with its FAR counterpart.
(A) Implemental numbering is the same as its FAR counterpart, except
when the text exceeds one paragraph,
[[Page 9]]
the subdivisions are numbered by skipping a unit in the FAR 1.105-
2(b)(2) prescribed numbering sequence. For example, three paragraphs
implementing FAR 19.501 would be numbered 219.501 (1), (2), and (3)
rather than (a), (b), and (c). Three paragraphs implementing FAR
19.501(a) would be numbered 219.501(a) (i), (ii), and (iii) rather than
(a) (1), (2), and (3). Further subdivision of the paragraphs follows the
prescribed numbering sequence, e.g., 219.501(1)(i)(A)(1)(i).
(B) Supplemental numbering is the same as its FAR counterpart, with
the addition of a number of 70 and up or (S-70) and up. Parts, subparts,
sections, or subsections are supplemented by the addition of a number of
70 and up. Lower divisions are supplemented by the addition of a number
of (S-70) and up. When text exceeds one paragraph, the subdivisions are
numbered using the FAR 1.105-2(b)(2) prescribed sequence, without
skipping a unit. For example, DFARS text supplementing FAR 19.501 would
be numbered 219.501-70. Its subdivisions would be numbered 219.501-70
(a), (b), and (c).
(C) Subdivision numbering below the 4th level does not repeat the
numbering sequence. It uses italicized Arabic numbers and then
italicized lower case Roman numerals.
(D) An example of DFARS numbering is in Table 1-1, DFARS Numbering.
(iii) Department/agency and component supplements must parallel the
FAR and DFARS numbering, except department/agency supplemental numbering
uses subsection numbering of 90 and up, instead of 70 and up.
Table 1-1--DFARS Numbering
------------------------------------------------------------------------
FAR Is implemented as Is supplemented as
------------------------------------------------------------------------
19 219 219.70
19.5 219.5 219.570
19.501 219.501 219.501-70
19.501-1 219.501-1 219.501-1-70
19.501-1(a) 219.501-1(a) 219.501-1(a)(S-70)
19.501-1(a)(1) 219.501-1(a)(1) 219.501-1(a)(1)(S-70)
------------------------------------------------------------------------
[56 FR 36284, July 31, 1991, as amended at 64 FR 51074, Sept. 21, 1999]
Sec. 201.304 Agency control and compliance procedures.
Departments and agencies and their component organizations may issue
acquisition regulations as necessary to implement or supplement the FAR
or DFARS.
(1)(i) Approval of the USD (AT&L) is required before including in a
department/agency or component supplement, or any other contracting
regulation document such as a policy letter or clause book, any policy,
procedure, clause, or form that--
(A) Has a significant effect beyond the internal operating
procedures of the agency; or
(B) Has a significant cost or administrative impact on contractors
or offerors.
(ii) Except as provided in paragraph (2) of this section, the
USD(AT&L) has delegated authority to the Director of Defense Procurement
and Acquisition Policy (OUSD(AT&L)DPAP) to approve or disapprove the
policies, procedures, clauses, and forms subject to paragraph (1)(i) of
this section.
(2) In accordance with Section 29 of the Office of Federal
Procurement Policy Act (41 U.S.C. 425), a new requirement for a
certification by a contractor or offeror may not be included in a
department/agency or component procurement regulation unless--
(i) The certification requirement is specifically imposed by
statute; or
(ii) Written justification for such certification is provided to the
Secretary of Defense by USD(AT&L), and the Secretary of Defense approves
in writing the inclusion of such certification requirement.
(3) Contracting activities must obtain the appropriate approval (see
201.404) for any class deviation (as defined in FAR subpart 1.4) from
the FAR or DFARS, before its inclusion in a department/agency or
component supplement or any other contracting regulation document such
as a policy letter or clause book.
(4) Each department and agency must develop and, upon approval by
OUSD(AT&L)DPAP, implement, maintain, and comply with a plan for
controlling the use of clauses other than those prescribed by FAR or
DFARS.
[[Page 10]]
(5) Departments and agencies must submit requests for the Secretary
of Defense, USD(AT&L), and OUSD(AT&L)DPAP approvals required by this
section through the Director of the DAR Council.
[56 FR 36284, July 31, 1991, as amended at 60 FR 61591, Nov. 30, 1995;
63 FR 11528, Mar. 9, 1998; 64 FR 39430, July 22, 1999; 65 FR 6552, Feb.
10, 2000; 68 FR 7439, Feb. 14, 2003]
Subpart 201.4_Deviations From the FAR
Sec. 201.402 Policy.
(1) The Director of Defense Procurement and Acquisition Policy,
Office of the Under Secretary of Defense (Acquisition, Technology, and
Logistics) (OUSD(AT&L)DPAP), is the approval authority within DoD for
any individual or class deviation from--
(i) FAR 3.104, Procurement Integrity, or DFARS 203.104, Procurement
Integrity;
(ii) FAR Subpart 27.4, Rights in Data and Copyrights, or DFARS
Subpart 227.4, Rights in Data and Copyrights;
(iii) FAR part 30, Cost Accounting Standards Administration, or
DFARS part 230, Cost Accounting Standards Administration;
(iv) FAR subpart 31.1, Applicability, or DFARS subpart 231.1,
Applicability (contract cost principles);
(v) FAR subpart 31.2, Contracts with Commercial Organizations, or
DFARS subpart 231.2, Contracts with Commercial Organizations; or
(vi) FAR part 32, Contract Financing (except subparts 32.7 and 32.8
and the payment clauses prescribed by subpart 32.1), or DFARS part 232,
Contract Financing (except subparts 232.7 and 232.8).
(2) Submit requests for deviation approval through department/agency
channels to the approval authority in paragraph (1) of this section,
201.403, or 201.404, as appropriate. Submit deviations that require
OUSD(AT&L)DPAP approval through the Director of the DAR Council. At a
minimum, each request must--
(i) Identify the department/agency, and component if applicable,
requesting the deviation;
(ii) Identify the FAR or DFARS citation from which a deviation is
needed, state what is required by that citation, and indicate whether an
individual or class deviation is requested;
(iii) Describe the deviation and indicate which of paragraphs (a)
through (f) of FAR 1.401 best categorizes the deviation;
(iv) State whether the deviation will have a significant effect
beyond the internal operating procedures of the agency and/or a
significant cost or administrative impact on contractors or offerors,
and give reasons to support the statement;
(v) State the period of time for which the deviation is required;
(vi) State whether approval for the same deviation has been received
previously, and if so, when;
(vii) State whether the proposed deviation was published (see FAR
subpart 1.5 for publication requirements) in the Federal Register and
provide analysis of comments;
(viii) State whether the request for deviation has been reviewed by
legal counsel, and if so, state results; and
(ix) Give detailed rationale for the request. State what problem or
situation will be avoided, corrected, or improved if request is
approved.
[56 FR 36284, July 31, 1991, as amended at 60 FR 61591, Nov. 30, 1995;
61 FR 50451, Sept. 26, 1996; 64 FR 8727, Feb. 23, 1999; 65 FR 6552, Feb.
10, 2000; 68 FR 7439, Feb. 14, 2003]
Sec. 201.403 Individual deviations.
(1) Individual deviations, except those described in 201.402(1) and
paragraph (2) of this section, must be approved in accordance with the
department/agency plan prescribed by 201.304(4).
(2) Contracting officers outside the United States may deviate from
prescribed nonstatutory FAR and DFARS clauses when--
(i) Contracting for support services, supplies, or construction,
with the governments of North Atlantic Treaty Organization (NATO)
countries or other allies (as described in 10 U.S.C. 2341(2)), or with
United Nations or NATO organizations; and
(ii) Such governments or organizations will not agree to the
standard clauses.
[65 FR 6552, Feb. 10, 2000]
[[Page 11]]
Sec. 201.404 Class deviations.
(b)(i) Except as provided in paragraph (b)(ii) of this section,
OUSD(AT&L)DPAP is the approval authority within DoD for any class
deviation.
(ii) The senior procurement executives for the Army, Navy, and Air
Force, and the Directors of the Defense Commissary Agency, the Defense
Contract Management Agency, and the Defense Logistics Agency, may
approve any class deviation, other than those described in 201.402(1),
that does not--
(A) Have a significant effect beyond the internal operating
procedures of the department or agency;
(B) Have a significant cost or administrative impact on contractors
or offerors;
(C) Diminish any preference given small business concerns by the FAR
or DFARS; or
(D) Extend to requirements imposed by statute or by regulations of
other agencies such as the Small Business Administration and the
Department of Labor.
[65 FR 6552, Feb. 10, 2000, as amended at 65 FR 52951, Aug. 31, 2000; 68
FR 7439, Feb. 14, 2003]
Subpart 201.6_Contracting Authority and Responsibilities
Sec. 201.602 Contracting officers.
Sec. 201.602-2 Responsibilities.
Contracting officers may designate qualified personnel as their
authorized representatives to assist in the technical monitoring or
administration of a contract. A contracting officer's representative
(COR)--
(1) Must be a Government employee, unless otherwise authorized in
agency regulations.
(2) Must be qualified by training and experience commensurate with
the responsibilities to be delegated in accordance with department/
agency guidelines.
(3) May not be delegated responsibility to perform functions at a
contractor's location that have been delegated under FAR 42.202(a) to a
contract administration office.
(4) May not be delegated authority to make any commitments or
changes that affect price, quality, quantity, delivery, or other terms
and conditions of the contract.
(5) Must be designated in writing, and a copy furnished the
contractor and the contract administration office,--
(i) Specifying the extent of the COR's authority to act on behalf of
the contracting officer;
(ii) Identifying the limitations on the COR's authority;
(iii) Specifying the period covered by the designation;
(iv) Stating the authority is not redelegable; and
(v) Stating that the COR may be personally liable for unauthorized
acts.
(6) Must maintain a file for each contract assigned. This file must
include, as a minimum--
(i) A copy of the contracting officer's letter of designation and
other documentation describing the COR's duties and responsibilities;
and
(ii) Documentation of actions taken in accordance with the
delegation of authority.
Sec. 201.602-70 Contract clause.
Use the clause at 252.201-7000, Contracting Officer's
Representative, in solicitations and contracts when appointment of a
contracting officer's representative is anticipated.
Sec. 201.603 Selection, appointment, and termination of appointment.
Sec. 201.603-2 Selection.
(1) In accordance with 10 U.S.C. 1724, in order to qualify to serve
as a contracting officer with authority to award or administer contracts
for amounts above the simplified acquisition threshold, a person must--
(i) Have completed all contracting courses required for a
contracting officer to serve in the grade in which the employee or
member of the armed forces will serve;
(ii) Have at least 2 years experience in a contracting position;
(iii) Have--
(A) Received a baccalaureate degree from an accredited educational
institution; and
[[Page 12]]
(B) Completed at least 24 semester credit hours, or equivalent, of
study from an accredited institution of higher education in any of the
following disciplines: accounting, business finance, law, contracts,
purchasing, economics, industrial management, marketing, quantitative
methods, and organization and management; and
(iv) Meet such additional requirements, based on the dollar value
and complexity of the contracts awarded or administered in the position,
as may be established by the Secretary of Defense.
(2) The qualification requirements in paragraph (1)(iii) of this
subsection do not apply to a DoD employee or member of the armed forces
who--
(i) On or before September 30, 2000, occupied--
(A) A contracting officer position with authority to award or
administer contracts above the simplified acquisition threshold; or
(B) A position either as an employee in the GS-1102 occupational
series or a member of the armed forces in an occupational specialty
similar to the GS-1102 series;
(ii) Is in a contingency contracting force; or
(iii) Is an individual appointed to a 3-year developmental position.
Information on developmental opportunities is contained in DoD Manual
5000.52-M, Acquisition Career Development Program.
(3) Waivers to the requirements in paragraph (1) of this subsection
may be authorized. Information on waivers is contained in DoD Manual
5000.52-M.
[67 FR 65509, Oct. 25, 2002]
Sec. 201.603-3 Appointment.
(a) Certificates of Appointment executed under the Armed Services
Procurement Regulation or the Defense Acquisition Regulation have the
same effect as if they had been issued under FAR.
(b) Agency heads may delegate the purchase authority in 213.301 to
DoD civilian employees and members of the U.S. Armed Forces.
[56 FR 36284, July 31, 1991, as amended at 64 FR 56705, Oct. 21, 1999]
PART 202_DEFINITIONS OF WORDS AND TERMS--Table of Contents
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Subpart 202.1_Definitions
Sec. 202.101 Definitions.
Congressional defense committees means--
(1) The Committee on Armed Services of the Senate;
(2) The Subcommittee on Defense of the Committee on Appropriations
of the Senate;
(3) The Committee on Armed Services of the House of Representatives;
and
(4) The Subcommittee on Defense of the Committee on Appropriations
of the House of Representatives.
Contract administration office also means a contract management
office of the Defense Contract Management Agency.
Contracting activity for DoD also means elements designated by the
director of a defense agency which has been delegated contracting
authority through its agency charter. DoD contracting activities are--
Department of Defense
Department of Defense Education Activity
TRICARE Management Activity
Acquisition and Procurement Office, Washington Headquarters Services
Army
Contract Support Agency
Office of the Deputy Chief of Staff for Research, Development and
Acquisition, Headquarters, U.S. Army Materiel Command
Aviation and Missile Command
Industrial Operations Command
Communications-Electronics Command
Tank-Automotive and Armaments Command
Training and Doctrine Command
Forces Command
Health Services Command
Military District of Washington
U.S. Army, Europe
National Guard Bureau
Corps of Engineers
Information Systems Command
Medical Research and Development Command
U.S. Army, Pacific
[[Page 13]]
Military Traffic Management Command
Space and Strategic Defense Command
Eighth U.S. Army
Intelligence and Security Command
U.S. Army, South
Defense Contracting Command-Washington
Directorate of Information Systems for Command, Control, Communications
and Computers, Office of the Secretary of the Army
U.S. Army Special Operations Command
Navy
Deputy, Acquisition Management, Office of the Assistant Secretary of the
Navy (Research, Development, and Acquisition)
Naval Air Systems Command
Space and Naval Warfare Systems Command
Naval Facilities Engineering Command
Naval Inventory Control Point
Naval Sea Systems Command
Naval Supply Systems Command
Office of Naval Research
Military Sealift Command
Strategic Systems Programs
Marine Corps Systems Command
Installations and Logistics, Headquarters, U.S. Marine Corps
Air Force
Office of the Assistant Secretary of the Air Force (Acquisition)
Office of the Deputy Assistant Secretary (Contracting)
Air Force Materiel Command
Air Force Reserve Command
Air Combat Command
Air Mobility Command
Air Education and Training Command
Pacific Air Forces
United States Air Forces in Europe
Air Force Space Command
Defense Advanced Research Projects Agency
Office of the Deputy Director, Management
Defense Contract Management Agency
Office of the Director, Defense Contract Management Agency
Defense Finance and Accounting Service
External Services, Defense Finance and Accounting Service
Defense Information Systems Agency
Defense Information Technology Contracting Organization
Defense Intelligence Agency
Office of Procurement
Defense Logistics Agency
Office of the Deputy Director, Logistics Operations
Defense Supply Centers
Defense Energy Support Center
National Imagery and Mapping Agency
Procurement and Contracting Office
Defense Threat Reduction Agency
Acquisition Management Office
National Security Agency
Headquarters, National Security Agency
Missile Defense Agency
Headquarters, Missile Defense Agency
United States Special Operations Command
Headquarters, United States Special Operations Command
Contracting officer's representative means an individual designated
and authorized in writing by the contracting officer to perform specific
technical or administrative functions.
Departments and agencies, as used in DFARS, means the military
departments and the defense agencies. The military departments are the
Departments of the Army, Navy, and Air Force (the Marine Corps is a part
of the Department of the Navy). The defense agencies are the Defense
Advanced Research Projects Agency, the Defense Commissary Agency, the
Defense Contract Management Agency, the Defense Finance and Accounting
Service, the Defense Information Systems Agency, the Defense
Intelligence Agency, the Defense Security Service, the Defense Logistics
Agency, the National Imagery and Mapping Agency, the Defense Threat
Reduction Agency, the National Security Agency, the Missile Defense
Agency, and the United States Special Operations Command.
Department of Defense (DoD), as used in DFARS, means the Department
of Defense, the military departments, and the defense agencies.
Executive agency means for DoD, the Department of Defense, the
Department of the Army, the Department of the Navy, and the Department
of the Air Force.
Head of the agency means, for DoD, the Secretary of Defense, the
Secretary of the Army, the Secretary of the Navy, and the Secretary of
the Air Force. Subject to the direction of the
[[Page 14]]
Secretary of Defense, the Under Secretary of Defense (Acquisition,
Technology, and Logistics), and the Director of Defense Procurement and
Acquisition Policy, the directors of the defense agencies have been
delegated authority to act as head of the agency for their respective
agencies (i.e., to perform functions under the FAR or DFARS reserved to
a head of agency or agency head), except for such actions that by terms
of statute, or any delegation, must be exercised within the Office of
the Secretary of Defense.
Procedures, Guidance, and Information (PGI) means a companion
resource to the DFARS that--
(1) Contains mandatory internal DoD procedures. The DFARS will
direct compliance with mandatory procedures using imperative language
such as ``Follow the procedures at * * *'' or similar directive
language;
(2) Contains non-mandatory internal DoD procedures and guidance and
supplemental information to be used at the discretion of the contracting
officer. The DFARS will point to non-mandatory procedures, guidance, and
information using permissive language such as ``The contracting officer
may use * * *'' or ``Additional information is available at * * *'' or
other similar language;
(3) Is numbered similarly to the DFARS, except that each PGI
numerical designation is preceded by the letters ``PGI''; and
(4) Is available electronically at http://www.acq.osd.mil/dpap/dars/
index.htm.
Senior procurement executive means, for DoD--
Department of Defense (including the defense agencies)--Under
Secretary of Defense (Acquisition, Technology, and Logistics);
Department of the Army--Assistant Secretary of the Army
(Acquisition, Logistics and Technology);
Department of the Navy--Assistant Secretary of the Navy (Research,
Development and Acquisition);
Department of the Air Force--Assistant Secretary of the Air Force
(Acquisition).
The directors of the defense agencies have been delegated authority
to act as senior procurement executive for their respective agencies,
except for such actions that by terms of statute, or any delegation,
must be exercised by the Under Secretary of Defense (Acquisition,
Technology, and Logistics).
[56 FR 36287, July 31, 1991]
Editorial Note: For Federal Register citations affecting section
202.101, see the List of CFR Sections Affected, which appears in the
Finding Aids section of the printed volume and on GPO Access.
PART 203_IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST
--Table of Contents
Sec.
203.070 Reporting of violations and suspected violations.
Subpart 203.1_Safeguards
203.104 Procurement integrity.
203.104-5 Disclosure of proprietary and source selection information.
Subpart 203.5_Other Improper Business Practices
203.502-2 Subcontractor kickbacks.
203.570 Prohibition on persons convicted of frauds or other defense-
contract-related felonies.
203.570-1 Scope.
203.570-2 Prohibition period.
203.570-3 Contract clause.
Subpart 203.7_Voiding and Rescinding Contracts
203.703 Authority.
Subpart 203.70_Contractor Standards of Conduct
203.7000 Policy.
203.7001 Procedures.
203.7002 Contract clause.
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36288, July 31, 1991, unless otherwise noted.
Sec. Sec. 203.070 Reporting of violations and suspected violations.
Report violations and suspected violations of the following
requirements in accordance with 209.406-3 or 209.407-3 and DoDD 7050.5,
Coordination of Remedies for Fraud and Corruption Related to Procurement
Activities:
[[Page 15]]
(a) Certificate of Independent Price Determination (FAR 3.103).
(b) Procurement integrity (FAR 3.104).
(c) Gratuities clause (FAR 3.203).
(d) Antitrust laws (FAR 3.303).
(e) Covenant Against Contingent Fees (FAR 3.405).
(f) Anti-kickback Act (FAR 3.502).
(g) Prohibitions on persons convicted of defense-related contract
felonies (203.570).
[69 FR 74990, Dec. 15, 2004]
Subpart 203.1_Safeguards
Sec. 203.104 Procurement integrity.
Sec. 203.104-5 Disclosure of proprietary and source selection
information.
(d)(4) For purposes of FAR 3.104-5(d)(4) only, DoD follows the
notification procedures in FAR 27.404(h). However, the first sentence in
FAR 27.404(h) does not apply to DoD.
[56 FR 36288, July 31, 1991, as amended at 62 FR 2612, Jan. 17, 1997]
Subpart 203.5_Other Improper Business Practices
Sec. 203.502-2 Subcontractor kickbacks.
(h) The DoD Inspector General has designated Special Agents of the
following investigative organizations as representatives for conducting
inspections and audits under the Anti-Kickback Act of 1986:
(i) U.S. Army Criminal Investigation Command.
(ii) Naval Criminal Investigative Service.
(iii) Air Force Office of Special Investigations.
(iv) Defense Criminal Investigative Service.
[56 FR 36288, July 31, 1991, as amended at 60 FR 29497, June 5, 1995]
Sec. 203.570 Prohibition on persons convicted of frauds or other
defense-contract-related felonies.
Sec. Sec. 203.570-1 Scope.
This subpart implements 10 U.S.C. 2408.
[69 FR 74990, Dec. 15, 2004]
Sec. Sec. 203.570-2 Prohibition period.
DoD has sole responsibility for determining the period of the
prohibition described in paragraph (b) of the clause at 252.203-7001,
Prohibition on Persons Convicted of Fraud or Other Defense-Contract-
Related Felonies. The prohibition period--
(a) Shall not be less than 5 years from the date of conviction
unless the agency head or a designee grants a waiver in the interest of
national security. Follow the waiver procedures at PGI 203.570-2(a); and
(b) May be more than 5 years from the date of conviction if the
agency head or a designee makes a written determination of the need for
the longer period. The agency shall provide a copy of the determination
to the address at PGI 203.570-2(b).
[69 FR 74990, Dec. 15, 2004]
Sec. 203.570-3 Contract clause.
Use the clause at 252.203-7001, Prohibition on Persons Convicted of
Fraud or Other Defense-Contract-Related Felonies, in all solicitations
and contracts exceeding the simplified acquisition threshold, except
solicitations and contracts for commercial items.
[64 FR 14398, Mar. 25, 1999. Redesignated at 69 FR 74990, Dec. 15, 2004]
Subpart 203.7_Voiding and Rescinding Contracts
Sec. 203.703 Authority.
The authority to act for the agency head under this subpart is
limited to a level no lower than an official who is appointed by and
with the advice of the Senate, without power of redelegation. For the
defense agencies, for purposes of this subpart, the agency head designee
is the Under Secretary of Defense (Acquisition, Technology, and
Logistics).
[56 FR 36288, July 31, 1991, as amended at 60 FR 61592, Nov. 30, 1995;
65 FR 39704, June 27, 2000]
[[Page 16]]
Subpart 203.70_Contractor Standards of Conduct
Sec. 203.7000 Policy.
Government contractors must conduct themselves with the highest
degree of integrity and honesty. Contractors should have standards of
conduct and internal control systems that--
(1) Are suitable to the size of the company and the extent of their
involvement in Government contracting,
(2) Promote such standards,
(3) Facilitate timely discovery and disclosure of improper conduct
in connection with Government contracts, and
(4) Ensure corrective measures are promptly instituted and carried
out.
Sec. 203.7001 Procedures.
(a) A contractor's system of management controls should provide
for--
(1) A written code of business ethics and conduct and an ethics
training program for all employees;
(2) Periodic reviews of company business practices, procedures,
policies, and internal controls for compliance with standards of conduct
and the special requirements of Government contracting;
(3) A mechanism, such as a hotline, by which employees may report
suspected instances of improper conduct, and instructions that encourage
employees to make such reports;
(4) Internal and/or external audits, as appropriate;
(5) Disciplinary action for improper conduct;
(6) Timely reporting to appropriate Government officials of any
suspected or possible violation of law in connection with Government
contracts or any other irregularities in connection with such contracts;
and
(7) Full cooperation with any Government agencies responsible for
either investigation or corrective actions.
(b) Contractors who are awarded a DoD contract of $5 million or more
must display DoD Hotline Posters prepared by the DoD Office of the
Inspector General unless--
(1) The contract will be performed in a foreign country; or
(2) The contractor has established an internal reporting mechanism
and program, as described in paragraph (a) of this section.
Sec. 203.7002 Contract clause.
Use the clause at 252.203-7002, Display of DoD Hotline Poster, in
solicitations and contracts expected to exceed $5 million, except when
performance will take place in a foreign country.
PART 204_ADMINISTRATIVE MATTERS--Table of Contents
Subpart 204.1_Contract Execution
Sec.
204.101 Contracting officer's signature.
Subpart 204.2_Contract Distribution
204.201 Procedures.
204.202 Agency distribution requirements.
204.203 Taxpayer identification information.
Subpart 204.4_Safeguarding Classified Information Within Industry
204.402 General.
204.404 Contract clause.
204.404-70 Additional contract clauses.
Subpart 204.6_Contract Reporting
204.600 Scope of subpart.
204.601 Record requirements.
204.602 Federal Procurement Data System.
204.670 Defense Contract Action Data System (DCADS).
204.670-1 Definitions.
204.670-2 Reportable contracting actions.
204.670-3 Contracting office responsibilities.
204.670-4 Contract administration office responsibilities.
204.670-5 Departmental data collection point responsibilities.
204.670-6 Types of DD Form 350 reports.
204.670-7 Security classification.
Subpart 204.8_Contract Files
204.802 Contract files.
204.804 Closeout of contract files.
204.804-1 Closeout by the office administering the contract.
204.804-2 Closeout of the contracting office files if another office
administers the contract.
204.805 Disposal of contract files.
Subpart 204.9_Taxpayer Identification Number Information
204.902 General.
204.904 Reporting payment information to the IRS.
[[Page 17]]
Subpart 204.11_Central Contractor Registration
204.1103 Procedures.
204.1104 Solicitation provision and contract clauses.
Subpart 204.70_Uniform Procurement Instrument Identification Numbers
204.7000 Scope.
204.7001 Policy.
204.7002 Procedures.
204.7003 Basic PII number.
204.7004 Supplementary PII numbers.
204.7005 Assignment of order codes.
Subpart 204.71_Uniform Contract Line Item Numbering System
204.7100 Scope.
204.7101 Definitions.
204.7102 Policy.
204.7103 Contract line items.
204.7103-1 Criteria for establishing.
204.7103-2 Numbering procedures.
204.7104 Contract subline items.
204.7104-1 Criteria for establishing.
204.7104-2 Numbering procedures.
204.7105 Contract exhibits and attachments.
204.7106 Contract modifications.
204.7107 Contract accounting classification reference number (ACRN).
Subpart 204.72_Contractor Identification
204.7200 Scope of subpart.
204.7201 Definitions.
204.7202 General.
204.7202-1 CAGE codes.
204.7202-2 DUNS numbers.
204.7202-3 TINs.
204.7203 Responsibilities of contracting officers.
204.7204 Maintenance of the CAGE file.
204.7205 Novation agreements, mergers and sales of assets.
204.7206 Using CAGE codes to identify agents and brokers.
204.7207 Solicitation provision.
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36289, July 31, 1991, unless otherwise noted.
Subpart 204.1_Contract Execution
Sec. 204.101 Contracting officer's signature.
(a)(i) Include the contracting officer's telephone number and, when
available, e-mail/Internet address on contracts and modifications.
(ii) The contracting officer may sign bilateral modifications of a
letter contract before signature by the contractor.
[56 FR 36289, July 31, 1991, as amended at 63 FR 69006, Dec. 15, 1998]
Subpart 204.2_Contract Distribution
Sec. 204.201 Procedures.
(1) The procuring contracting officer (PCO) retains the original
signed contract for the official contract file. Administrative
contracting officers and termination contracting officers provide the
original of each modification to the PCO for retention in the official
contract file. Unless otherwise directed by department/agency
procedures, the office issuing the orders maintains the original of
orders under basic ordering agreements and the original of provisioning
orders.
(2) Ensure that distribution of contracts and modifications is
consistent with security directives.
(c) Distribute one copy to each Defense Finance and Accounting
Service (DFAS) accounting station cited in the contract, in addition to
the copy provided to each DFAS funding office.
(e)(i) Distribute one copy of each of the following types of
contracts or modifications to the appropriate Defense Contract Audit
Agency (DCAA) field audit office (listed in DCAAP 5100.1, Directory of
DCAA Offices, available on the World Wide Web, Internet address http://
www.deskbook.osd.mil, under reference library documents)--
(A) Cost reimbursement;
(B) Time-and-materials;
(C) Labor-hour;
(D) Fixed-price contracts with provisions for redetermination, cost
incentives, economic price adjustment based on cost, or cost
allowability; and
(E) Any other contract that requires audit service.
(ii) If there is a question as to the appropriate DCAA field audit
office, request the assistance of the DCAA procurement liaison auditor
or the nearest DCAA field audit office.
[[Page 18]]
(f) Provide two copies to offices performing contract administration
support functions.
[56 FR 36289, July 31, 1991, as amended at 59 FR 27668, May 27, 1994; 63
FR 31935, June 11, 1998; 64 FR 51075, Sept. 21, 1999]
Sec. 204.202 Agency distribution requirements.
(1) Distribute copies of contracts as follows--
(i) Four copies to the contract administration office (send
simultaneously with the copy furnished under FAR 4.201(b));
(ii) One copy to each consignee indicated in the contract. A
transshipping terminal is not a consignee.
(A) Inventory control points that have an automated uniform
inventory control point data base that interfaces with consignees may
use their automated procedure rather than sending a written copy of the
contract. However, when inspection is required at destination, send a
written copy to the consignee.
(B) The Defense Logistics Agency is authorized to prescribe
alternate procedures for distribution of contract documents in Defense
Supply Center Philadelphia European Region;
(iii) Two copies to the military interdepartmental purchase request
requiring activity in the case of coordinated acquisition;
(iv) One copy to the contract administration office (CAO) automatic
data processing point, except when the DoDAAD code is the same as that
of either the CAO or the payment office (see the Federal Directory of
Contract Administration Services Components); and
(v) One copy, or an extract of the pertinent information, to the
cognizant Defense Security Service office listed in DoD 5100.76-M,
Physical Security of Sensitive Conventional Arms, Ammunition, and
Explosives, when the clause at 252.223-7007, Safeguarding Sensitive
Conventional Arms, Ammunition, and Explosives, is included in the
contract.
(2) The activity executing a contract modification shall furnish a
copy of the basic contract and all modifications to--
(i) The new and old payment office when adding or changing a payment
office;
(ii) The new contract administration office, a new consignee or
other activity, based on the extent to which each activity is concerned
with the basic contract and modifications.
(3) Distribution of modifications issued to provide initial or
amended shipping instructions under 204.7004(c)(3)(iii) and 204.7004(f)
may be limited to the following--
(i) Contractor, one copy;
(ii) Receiving activity, one copy each;
(iii) Contract administration office, one copy;
(iv) Payment office, one copy; and
(v) Contract administration office automatic data processing point,
one copy.
(4) Distribution of modifications generated by automated means
(computer programs) may be limited to the following--
(i) Contractor, one copy;
(ii) Contract administration office, one copy;
(iii) New payment office, one copy;
(iv) Procuring contracting office, one copy;
(v) Funding activities, one copy to each; and
(vi) Consignee, one copy to each.
[56 FR 36289, July 31, 1991, as amended at 61 FR 7742, Feb. 29, 1996; 63
FR 31935, June 11, 1998; 64 FR 51075, Sept. 21, 1999; 64 FR 61028, Nov.
9, 1999]
Sec. 204.203 Taxpayer identification information.
(b) The procedure at FAR 4.203(b) does not apply to contracts that
include the clause at FAR 52.204-7, Central Contractor Registration. The
payment office obtains the taxpayer identification number and the type
of organization from the Central Contractor Registration database.
[68 FR 64558, Nov. 14, 2003]
[[Page 19]]
Subpart 204.4_Safeguarding Classified Information Within Industry
Sec. 204.402 General.
(1) Subpart 239.74 contains policy and procedures for securing
telecommunications between Government agencies and contractors and
subcontractors.
(2) Pursuant to section 808 of Pub. L. 102-190, DoD employees or
members of the Armed Forces who are assigned to or visiting a contractor
facility and are engaged in oversight of an acquisition program will
retain control of their work product. Classified work products of DoD
employees or members of the Armed Forces shall be handled in accordance
with DoD 5220.22-M, National Industrial Security Program Operating
Manual, and DoD 5220.22-R, Industrial Security Regulation. Contractor
procedures for protecting against unauthorized disclosure of information
shall not require DoD employees or members of the Armed Forces to
relinquish control of their work products, whether classified or not, to
a contractor.
[57 FR 14992, Apr. 23, 1992, as amended at 64 FR 51075, Sept. 21, 1999]
Sec. 204.404 Contract clause.
Sec. 204.404-70 Additional contract clauses.
(a) Use the clause at 252.204-7000, Disclosure of Information, in
solicitations and contracts when the contractor will have access to or
generate unclassified information that may be sensitive and
inappropriate for release to the public.
(b) Use the clause at 252.204-7003, Control of Government Personnel
Work Product, in all solicitations and contracts.
(c) Use the clause at 252.204-7005, Oral Attestation of Security
Responsibilities, in solicitations and contracts that include the clause
at FAR 52.204-2, Security Requirements.
[57 FR 14992, Apr. 23, 1992, as amended at 64 FR 45197, Aug. 19, 1999]
Subpart 204.6_Contract Reporting
Sec. 204.600 Scope of subpart.
The Defense Contract Action Data System (DCADS) (see 204.670) is the
DoD reporting system that supports the uniform reporting requirements
for--
(1) DD Form 350, Individual Contracting Action Report; and
(2) DD Form 1057, Monthly Summary of Contracting Actions.
[65 FR 39708, June 27, 2000]
Sec. 204.601 Record requirements.
(a) The DCADS meets FAR Subpart 4.6 record retention requirements.
(d) The Directorate for Information, Operation, and Reports (DIOR),
of the Washington Headquarters Services (WHS) transmits required DoD
information to the Federal Procurement Data System.
[65 FR 39708, June 27, 2000]
Sec. 204.602 Federal Procurement Data System.
(c) DoD uses the DD Form 350, Individual Contracting Action Report,
instead of the SF 279, Federal Procurement Data System (FPDS) Individual
Contract Action Report. DoD uses the DD Form 1057, Monthly Summary of
Contracting Actions, instead of the SF 281, FPDS Summary Contract Action
Report ($25,000 or Less).
[65 FR 39708, June 27, 2000]
Sec. 204.670 Defense Contract Action Data System (DCADS).
Sec. 204.670-1 Definitions.
As used in this section and 253.204-70 and 253.204-71--
(a) Contract administration office means an office, other than the
contracting office, which awards or executes contracting actions on
behalf of the contracting office, including actions relating to the
settlement of terminated contracts.
(b) Contracting action means any action related to the purchasing,
renting, or leasing of supplies, services, or construction. The term
does not include grants, cooperative agreements, or training
authorizations. The term includes, but is not limited to, the following:
(1) Definitive contracts, including notices of award.
(2) Letter contracts.
(3) Purchase orders.
[[Page 20]]
(4) Purchases made using the Governmentwide commercial purchase
card.
(5) Actions for purchase of land or rental or lease of real
property.
(6) Orders under existing contracts or agreements, e.g.--
(i) Orders against basic ordering agreements, including service
orders issued on DD Form 1164, Service Order for Personal Property, by
installation transportation offices;
(ii) Calls against blanket purchase agreements;
(iii) Job orders;
(iv) Task orders;
(v) Delivery orders;
(vi) Communication services authorizations; and
(vii) Notices of termination or cancellation.
(7) Contract modifications, e.g.--
(i) Change orders;
(ii) Supplemental agreements;
(iii) Funding actions; and
(iv) Option exercises.
(c) Departmental data collection points means--
(1) For the Army (including Corps of Engineers Civil Works):
Department of the Army, ATTN: SAAL-PA, 5109 Leesburg Pike, Suite 302,
Falls Church, VA 22041-3201.
(2) For the Navy: Fleet Industrial Supply Center, Norfolk Detachment
Washington, DC, ATTN: PMRS, Code 02W4.A, 1014 N Street SE, Suite 400,
Washington Navy Yard, Washington, DC 20374-5014.
(3) For the Air Force: SAF/AQCX, 1060 Air Force Pentagon,
Washington, DC 20330-1060.
(4) For the Defense Logistics Agency: Headquarters, Defense
Logistics Agency, ATTN: Procurement Management Directorate (Acquisition
Programs Team), 8725 John J. Kingman Road, Suite 3147, Fort Belvoir, VA
22060-6221.
(5) For the Defense Contract Management Agency (excluding contract
administration office responsibilities in 204.670-4): Defense Contract
Management Agency, ATTN: DCMA-DSP, 6350 Walker Lane, Suite 300,
Alexandria, VA 22310-3226.
(6) For other DoD contracting activities: Department of the Army,
ATTN: SAAL-PA, 5109 Leesburg Pike, Suite 302, Falls Church, VA 22041-
3201.
(d) United States and outlying areas is defined in Federal
Information Processing Standard Publication (FIPS PUB) 55, Guideline:
Codes for Named Populated Places, Primary County Divisions, and Other
Locational Entities of the United States and Outlying Areas. Outlying
areas are--
(1) American Samoa;
(2) The Federated States of Micronesia;
(3) Guam;
(4) The Marshall Islands;
(5) Northern Mariana Islands;
(6) The Trust Territory of Palau;
(7) Puerto Rico;
(8) The U.S. Minor Outlying Islands; and
(9) The U.S. Virgin Islands.
[56 FR 36289, July 31, 1991, as amended at 60 FR 61592, Nov. 30, 1995;
61 FR 51030, Sept. 30, 1996; 62 FR 34121, June 24, 1997; 64 FR 51075,
Sept. 21, 1999; 65 FR 39708, June 27, 2000; 66 FR 47096, Sept. 11, 2001;
67 FR 46113, July 12, 2002]
Sec. 204.670-2 Reportable contracting actions.
(a) Except as provided in paragraph (c) of this subsection, complete
a DD Form 350 for the following types of contracting actions in
accordance with the instructions in 253.204-70:
(1) Actions that obligate or deobligate more than $25,000, except
actions summarized on DD Form 1057 in accordance with paragraph (b)(2)
or (3) of this subsection.
(2) Actions that obligate or deobligate $25,000 or less and are--
(i) Under a very small business set-aside (see FAR Subpart 19.9);
(ii) Requirements that DoD is processing for a non-DoD Federal
agency;
(iii) Multiple reports required by 204.670-6(c)(1) to separate
foreign military sales (FMS) requirements from non-FMS requirements; or
(iv) In a designated industry group under the Small Business
Competitiveness Demonstration Program (see FAR Subpart 19.10), except
for--
(A) Foreign military sales;
(B) Orders or modifications under Federal schedules;
(C) Actions with government agencies;
(D) Actions with non-U.S. business firms; and
[[Page 21]]
(E) Actions where the place of performance is other than the United
States and its outlying areas.
(3) Actions that establish an indefinite-delivery contract not
reported under other paragraphs of this subsection.
(4) Actions of any dollar value that the contracting office chooses
to report on a DD Form 350.
(b) Except as provided in paragraph (c) of this subsection,
summarize the following types of contracting actions on the monthly DD
Form 1057 in accordance with the instructions in 253.204-71:
(1) Actions that obligate or deobligate $25,000 or less, except
actions reported on DD Form 350 in accordance with paragraph (a)(2),
(3), or (4) of this subsection.
(2) Actions that obligate or deobligate more than $25,000, but not
more than $200,000, and support--
(i) A contingency operation as defined in 10 U.S.C. 101(a)(13); or
(ii) A humanitarian or peacekeeping operation as defined in 10
U.S.C. 2302(8).
(3) Actions that obligate or deobligate more than $25,000, but not
more than $200,000, and are placed by a contracting officer on a Navy
vessel.
(c) Do not report the following types of contracting action on
either the DD Form 350 or DD Form 1057:
(1) Imprest fund transactions, SF 44 purchases, and micro-purchases
obtained through use of the Government-wide commercial purchase card.
(2) Transactions that cite only nonappropriated funds (Treat funds
held in trust accounts for foreign governments as appropriated funds).
(3) Transactions for purchase of land, or rental or lease of real
property, when the General Services Administration (GSA) executes the
action.
(4) Orders from GSA stock and the GSA Consolidated Purchase Program.
(5) Transactions that involve Government bills of lading or
transportation requests, except orders placed under Regional Storage
Management Office basic ordering agreements.
(6) Requisitions transferring supplies within or among the
departments or agencies.
(7) Pursuant to 204.670-6(b), orders placed by other contracting
activities against indefinite-delivery contracts awarded by the--
(i) Military Traffic Management Command;
(ii) Defense Energy Support Center for petroleum and petroleum
products; or
(iii) Defense Supply Center, Richmond, for petroleum products
[64 FR 45197, Aug. 19, 1999; 64 FR 52670, Sept. 30, 1999, as amended at
65 FR 39708, June 27, 2000; 66 FR 47097, Sept. 11, 2001; 67 FR 46113,
July 12, 2002]
Sec. 204.670-3 Contracting office responsibilities.
(a) For DD Form 350, contracting offices--
(1) Prepare the appropriate type of DD Form 350 (see 204.670-6) in
accordance with the instructions in 253.204-70, for all reportable
contracting actions (see 204.670-2(a)), including actions accomplished
by contract administration offices on behalf of the contracting office.
(2) Complete the DD Form 350 when funds are obligated or deobligated
or when an indefinite-delivery contract is established with no initial
obligation of funds. For actions accomplished by a contract
administration office, complete the DD Form 350 upon receipt of the
contractual instrument annotated ``DD FORM 350 REPORTING COPY.''
(3) Submit all DD Forms 350 for the calendar month to the
departmental data collection point (see 204.670-1(c)) in accordance with
departmental or agency procedures.
(4) Prepare and submit a corrected or canceling DD Form 350 as
required in accordance with departmental data collection point
instructions.
(5) Establish a control system for assigning report numbers to DD
Forms 350 (Line A2 of the DD Form 350). The number must have six
positions and may be any combination of alpha or numeric characters. If
more than one activity within a contracting office uses the same
reporting office code, the contracting office must assign separate
blocks of numbers to each activity to prevent duplication of report
numbers.
(6) Maintain the DD Form 350 in the contract file in any medium, in
accordance with departmental or agency procedures.
[[Page 22]]
(b) For DD Form 1057, contracting offices--
(1) Prepare a DD Form 1057, in accordance with the instructions in
253.204-71, covering reportable contracting actions (see 204.670-2(b)),
including actions accomplished by contract administration offices on
behalf of the contracting office. An installation, base, or other
activity may have more than one contracting office code to separate the
various types of acquisitions, such as base and central contracting, or
RDT&E and non-RDT&E acquisition. Each contracting office with a separate
code must submit its own DD Form 1057.
(2) Complete the DD Form 1057 within three working days after the
cutoff of the reporting month. Contracting offices may not cut off the
reporting month before the 25th calendar day. The cutoff date for
September is September 30. Submit the DD Form 1057 to the departmental
data collection point in accordance with departmental or agency
procedures.
(3) Unless otherwise instructed by the departmental data collection
point, do not submit revised DD Form 1057 reports. Include any required
corrections or adjustments in following month's report.
[65 FR 39708, June 27, 2000, as amended at 66 FR 47097, Sept. 11, 2001;
67 FR 46113, July 12, 2002]
Sec. 204.670-4 Contract administration office responsibilities.
Contract administration offices executing actions subject to DD Form
350 or DD Form 1057 reporting must submit an annotated copy of the
contractual instrument to the contracting office so that the contracting
office can submit the required report.
(a) For DD Form 350, annotate in the heading of the contractual
instrument in large block letters ``DD FORM 350 REPORTING COPY.'' Send
the annotated copy to the contracting office within one working day
after the action date.
(b) For DD Form 1057, annotate in the heading of the contractual
instrument in large block letters ``DD FORM 1057 REPORTING COPY.'' Send
the annotated copy with the normal distribution.
[65 FR 39709, June 27, 2000]
Sec. 204.670-5 Departmental data collection point responsibilities.
Departmental data collection points--
(a) Collect DD Forms 350 and 1057 data provided by their contracting
offices;
(b) Electronically record the data in accordance with the
instructions for recording and editing developed by WHS-DIOR with the
majority agreement of the departments and agencies and prescribed by the
Director of Defense Procurement; and
(c) Submit monthly reports (noncumulative) to Washington
Headquarters Services, ATTN: DIOR, within 18 days after the close of the
reporting period, except the due date for September may be extended for
no more than ten days. Report Control Symbol DD-AT&L(M)1014 applies to
reports for DD Form 350 actions, and Report Control Symbol DD-
AT&L(M)1015 applies to reports for DD Form 1057 actions.
[65 FR 39709, June 27, 2000, as amended at 66 FR 47097, Sept. 11, 2001]
Sec. 204.670-6 Types of DD Form 350 reports.
There are three types of reports--single, consolidated, and
multiple.
(a) A single report is one DD Form 350 report per action.
(b) A consolidated report combines several actions.
(1) Prepare consolidated reports for--
(i) Military Traffic Management Command awards of indefinite-
delivery contracts for ocean transportation. The Command reports at the
beginning of each fiscal year the estimated value of the orders for that
fiscal year on one DD Form 350.
(ii) Defense Energy Support Center or Defense Supply Center,
Richmond, indefinite-delivery contracts for petroleum or petroleum
supplies. The Centers, at the time of award, report the estimated value
of the orders to be placed against the contract on one DD Form 350.
(iii) Orders placed by the Defense Commissary Agency (DeCA) for
resale items over $25,000. DeCA consolidates
[[Page 23]]
the orders monthly and reports the cumulative dollar amounts and actions
on one DD Form 350.
(iv) Vouchers processed by the U.S. Army Contracting Command, Europe
(USACCE), for the purchase of utilities from municipalities (e.g., gas,
electricity, water, sewage, steam, snow removal, and garbage
collection). USACCE consolidates these transactions monthly and reports
the cumulative dollar amounts and actions on one DD Form 350.
(2) Consolidated reports may be prepared in accordance with
departmental or agency procedures for orders under communications
service agreements for local dial tone services.
(c) A multiple report is more than one DD Form 350 per contracting
action. Prepare multiple reports if--
(1) The action includes FMS requirements in addition to non-FMS
requirements (Line B9 on the DD Form 350). Submit one DD Form 350 report
for the FMS requirements and another DD Form 350 report for the non-FMS
requirements.
(2) The action includes more than one type of contract (Line C5 on
the DD Form 350) and the type with the least dollar value exceeds
$500,000. Prepare a separate DD Form 350 for each contract type.
(3) The action includes non-DoD Federal agency requirements and DoD
requirements. Submit one DD Form 350 for the non-DoD requirements and
another DD Form 350 for the DoD requirements.
[65 FR 39709, June 27, 2000, as amended at 66 FR 47097, Sept. 11, 2001;
67 FR 46113, July 12, 2002]
Sec. 204.670-7 Security classification.
Submit DD Forms 350 as unclassified documents. Classified contracts
are not exempt from reporting solely because the contract is classified.
Contact the appropriate departmental data collection points for special
instructions if it is necessary for security reasons to modify coding of
any information on the DD Form 350. If contact cannot be made for
security reasons, obtain instructions from the Director of Security,
Office of the Assistant Secretary of Defense (Command, Control,
Communications, and Intelligence), (703) 614-0578, or DSN 224-0578.
[65 FR 39709, June 27, 2000]
Subpart 204.8_Contract Files
Sec. 204.802 Contract files.
Official contract files shall consist of--
(1) Only original, authenticated or conformed copies of contractual
instruments--
(i) Authenticated copies means copies that are shown to be genuine
in one of two ways--
(A) Certification as true copy by signature of an authorized person;
or
(B) Official seal.
(ii) Conformed copies means copies that are complete and accurate,
including the date signed and the names and titles of the parties who
signed them.
(2) Signed or official record copies of correspondence, memoranda,
and other documents.
Sec. 204.804 Closeout of contract files.
Normally, the closeout date for contract files is the date in Block
9d on the DD Form 1594, Contract Completion Statement, or in columns 59-
65 on the PK9. If the contracting office must do a major closeout action
that will take longer than three months after the date shown in Block 9d
of the DD Form 1594, or in columns 59-65 of the PK9--
(1) The closeout date for file purposes will be the date in Block
10e of the DD Form 1594 or the date of the closeout statement executed
when the MILSCAP PK9 is received.
(2) The contracting office shall notify the contract administration
office of the revised closeout date by either sending a copy of the
completed DD Form 1594 or by preparing a MILSCAP Format Identifier PKZ,
Contract Closeout Extension.
Sec. 204.804-1 Closeout by the office administering the contract.
(1) For contracting offices administering their own contracts,
locally developed forms or statement of completion may be used instead
of the DD Form 1594, Contract Completion Statement. Whichever method is
used, the
[[Page 24]]
form shall be retained in the official contract file.
(2) For contracts valued above the simplified acquisition threshold,
prepare a DD Form 1597, Contract Closeout Check List, (or agency
equivalent) to ensure that all required contract actions have been
satisfactorily accomplished.
[56 FR 36289, July 31, 1991, as amended at 64 FR 2596, Jan. 15, 1999]
Sec. 204.804-2 Closeout of the contracting office files if another
office administers the contract.
(1) When an office, other than the contracting office, administers
the contract, it shall--
(i) Provide the contracting office an interim contract completion
statement when the contract is physically completed and accepted. This
notice may be in the form of either a DD Form 1594, Contract Completion
Statement, or a MILSCAP Format Identifier Interim PK9, Contract Physical
Completion. When the DD Form 1594 is used, the contracting officer--
(A) Annotates Block 8, Remarks, with--
(1) ``Notice of Physical Completion;''
(2) Final acceptance date;
(3) Signature of a responsible official; and
(4) Date signed.
(B) Does not complete Blocks 9 (b), (c), and (d) at this time;
(ii) Prepare a DD Form 1597, Contract Closeout Check List, if
necessary, to determine that all the required actions have been done;
(iii) Initiate DD Form 1593, Contract Administration Completion
Record, if necessary to obtain statements from other organizational
elements that they have completed the actions they are responsible for;
and
(iv) Upon final payment--
(A) Process the DD Form 1594 with Blocks 1 through 9 completed or
the MILSCAP Format Identifier PK9 verifying that all contract
administration office actions have been done; and
(B) Send the original of the DD Form 1594 or the MILSCAP Format
Identifier PK9 to the contracting office, and file a copy in the
official contract file.
(2) If the administrative contracting officer (ACO) cannot closeout
a contract within the specified time period (see FAR 4.804-1), the ACO
must notify the procuring contracting officer (PCO) within 45 days after
the expiration of the time period of--
(i) The reasons for the delay; and
(ii) New target date for closeout. If MILSCAP procedures apply, the
ACO shall use the MILSCAP Format Identifier PKX, Unclosed Contract
Status, to provide this notice to the PCO.
(3) If the contract still is not closed out by the new target date,
the ACO shall again notify the PCO with the reasons for delay and new
target date. If MILSCAP procedures apply, continue to use the MILSCAP
Format Identifier PKX, Unclosed Contract Status, to provide this notice.
Sec. 204.805 Disposal of contract files.
(1) The sources of the period for which official contract files must
be retained are General Records Schedule 3 (Procurement, Supply, and
Grant Records) and General Records Schedule 6 (Accountable Officers'
Accounts Records). Copies of the General Records Schedule may be
obtained from the National Archives and Records Administration,
Washington, DC 20408.
(2) Deviations from the periods cannot be granted by the Defense
Acquisition Regulatory Council. Forward requests for deviations to both
the General Accounting Office and the National Archives and Records
Administration.
(3) Hold completed contract files in the office responsible for
maintaining them for a period of 12 months after completion. After the
initial 12 month period, send the records to the local records holding
or staging area until they are eligible for destruction. If no space is
available locally, transfer the files to the General Services
Administration Federal Records Center that services the area.
(4) Duplicate or working contract files should contain no originals
of materials that properly belong in the official files. Destroy working
files as soon as practicable once they are no longer needed.
(5) Retain pricing review files, containing documents related to
reviews
[[Page 25]]
of the contractor's price proposals, subject to cost or pricing data
(see FAR 15.403-4), for six years. If it is impossible to determine the
final payment date in order to measure the six year period, retain the
files for nine years.
[56 FR 36289, July 31, 1991, as amended at 62 FR 40472, July 29, 1997;
63 FR 11528, Mar. 9, 1998]
Subpart 204.9_Taxpayer Identification Number Information
Source: 64 FR 43099, Aug. 9, 1999, unless otherwise noted.
Sec. 204.902 General.
(b) DoD uses DD Form 350, Individual Contracting Action Report, (see
204.670) to meet these reporting requirements.
[64 FR 43099, Aug. 9, 1999]
Sec. 204.904 Reporting payment information to the IRS.
(1) 26 U.S.C. 6041 and 6041A and 26 CFR 1.6041 require Government
payors to report to the IRS, on IRS Form 1099, payments of an annual
cumulative value of $600 or more provided to a contractor, except
payments for--
(i) Supplies, unless the supplies are incidental to the furnishing
of services;
(ii) Telegram, telephone, freight, storage, or similar charges;
(iii) Income that the payor must report on IRS Form W-2 (e.g.,
payments to employees or payments under contracts for personal
services);
(iv) Any contract with a Federal agency;
(v) Any contract with a State, the District of Columbia, or an
outlying area of the United States; or a political subdivision, agency,
or instrumentality of any of the foregoing;
(vi) Any contract with an organization exempted from taxation by 26
U.S.C. 501(a). Such organizations may include charitable, social
welfare, labor, agricultural, veterans', and political organizations;
business leagues; social clubs; fraternal societies; and employees'
associations. Contracting officers may obtain additional information to
assist in determining an organization's tax-exempt status via the
Internet at http://www.irs.ustreas.gov/prod/bus--info/eo/eo-types.html;
(vii) Any contract with a foreign government or a political
subdivision of a foreign government;
(viii) Any contract with an international organization listed in 22
U.S.C. 288;
(ix) Any classified contract excepted by 26 U.S.C. 6050M. As used in
this section only, a contract is classified if--
(A) DoD designates the existence of the contract or the contract
subject matter as classified (i.e., the contract requires a specific
degree of protection against unauthorized disclosure for reasons of
national security); or
(B) The head of the agency determines that filing IRS Form 1099
would interfere with the effective conduct of a confidential law
enforcement or foreign intelligence activity; or
(x) Such other services as the IRS may specify in regulations.
(2) Unless an exception in paragraph (1) of this section applies,
provide as the last page of the copy of the contract sent to the payment
office--
(i) A statement that the contractor is providing services subject to
Form 1099 payment information reporting to the IRS, as required by 26
U.S.C. 6041 and 6041A; and
(ii) The contractor's Taxpayer Identification Number and type of
organization, if the contract does not include the clause at FAR 52.204-
7, Central Contractor Registration.
[64 FR 43099, Aug. 9, 1999, as amended at 68 FR 64558, Nov. 14, 2003; 70
FR 35544, June 21, 2005]
Subpart 204.11_Central Contractor Registration
Source: 68 FR 64558, Nov. 14, 2003, unless otherwise noted.
Sec. 204.1103 Procedures.
(e) On contractual documents transmitted to the payment office,
provide the Commercial and Government Entity code, instead of the DUNS
number or DUNS+4 number, in accordance with agency procedures.
[70 FR 57188, Sept. 30, 2005]
[[Page 26]]
Sec. 204.1104 Solicitation provision and contract clauses.
When using the clause at FAR 52.204-7, Central Contractor
Registration, use the clause with 252.204-7004, Alternate A.
Subpart 204.70_Uniform Procurement Instrument Identification Numbers
Sec. 204.7000 Scope.
This subpart--
(a) Prescribes policies and procedures for assigning numbers to all
solicitations, contracts, and related instruments; and
(b) Does not apply to solicitations or orders for communication
service authorizations issued by the Defense Information Technology
Contracting Organization of the Defense Information Systems Agency in
accordance with 239.7407-2.
[68 FR 64556, Nov. 14, 2003]
Sec. 204.7001 Policy.
(a) Use the uniform PII numbering system prescribed by this subpart
for the solicitation/contract instruments described in 204.7003 and
204.7004.
(b) Retain the basic PII number unchanged for the life of the
instrument.
Sec. 204.7002 Procedures.
(a) In assigning PII numbers--
(1) Use only the alpha-numeric characters, as prescribed in this
subpart; and
(2) Do not use the letter ``I'' or ``O''.
(b) If department/agency procedures require other identification on
the solicitation, contract, or other related instrument forms, enter it
in such a location so as to separate it clearly from the PII number.
(c) Enter the basic PII number, including Federal supply contract
numbers and any supplementary numbers, in the spaces provided on the
solicitation, contract, or related instrument forms. Separate the major
elements by dashes, e.g., N00023-90-D-0009 (not necessary in electronic
transmission). If there is no space provided on the form, enter the
number in the upper right corner of the form and identify what it is
(e.g., Supplementary Number N00023-90-F-0120).
[56 FR 36289, July 31, 1991, as amended at 65 FR 14398, Mar. 16, 2000;
68 FR 64556, Nov. 14, 2003]
Sec. 204.7003 Basic PII number.
(a) Elements of a number. The number consists of 13 alpha-numeric
characters grouped to convey certain information.
(1) Positions 1 through 6. The first six positions identify the
department/agency and office issuing the instrument. Use the DoD
Activity Address Code (DoDAAC) assigned to the issuing office. DoDAACs
can be found at https://day2k1.daas.dla.mil/daasinq/.
(2) Positions 7 through 8. The seventh and eighth positions are the
last two digits of the fiscal year in which the PII number was assigned.
(3) Position 9. Indicate the type of instrument by entering one of
the following upper case letters in position nine--
(i) Blanket purchase agreements--A
(ii) Invitations for bids--B
(iii) Contracts of all types except indefinite delivery contracts,
facilities contracts, sales contracts, and contracts placed with or
through other Government departments or agencies or against contracts
placed by such departments or agencies outside the DoD--C
(iv) Indefinite delivery contracts--D
(v) Facilities contracts--E
(vi) Contracting actions placed with or through other Government
departments or agencies or against contracts placed by such departments
or agencies outside the DoD (including actions with the National
Industries for the Blind (NIB), the National Industries for the Severely
Handicapped (NISH), and the Federal Prison Industries (UNICOR))--F
(vii) Basic ordering agreements--G
(viii) Agreements, including basic agreements and loan agreements,
but excluding blanket purchase agreements, basic ordering agreements,
and leases--H
(ix) Do not use--I
(x) Reserved--J
(xi) Short form research contract--K
(xii) Lease agreement--L
[[Page 27]]
(xiii) Purchase orders--manual (assign W when numbering capacity of
M is exhausted during the fiscal year)--M
(xiv) Notice of intent to purchase--N
(xv) Do not use--O
(xvi) Purchase order--automated (assign V when numbering capacity of
P is exhausted during a fiscal year)--P
(xvii) Request for quotation--manual--Q
(xviii) Request for proposal--R
(xix) Sales contract--S
(xx) Request for quotation--automated (assign U when numbering
capacity of T is exhausted during a fiscal year)--T
(xxi) See T--U
(xxii) See P--V
(xxiii) See M--W
(xxiv) Reserved for departmental use--X
(xxv) Imprest fund--Y
(xxvi) Reserved for departmental use--Z
(4) Position 10 through 13. Enter the serial number of the
instrument in these positions. A separate series of serial numbers may
be used for any type of instrument listed in paragraph (a)(3) of this
section. Activities shall assign such series of PII numbers
sequentially. An activity may reserve blocks of numbers or alpha-numeric
numbers for use by its various components.
(b) Illustration of PII number. The following illustrates a properly
configured PII number--
[GRAPHIC] [TIFF OMITTED] TC01FE91.052
[56 FR 36289, July 31, 1991, as amended at 56 FR 67212, Dec. 30, 1991;
59 FR 27668, May 27, 1994; 60 FR 61592, Nov. 30, 1995; 61 FR 50451,
Sept. 26, 1996; 62 FR 34121, June 24, 1997; 64 FR 51075, Sept. 21, 1999;
65 FR 14398, Mar. 16, 2000; 65 FR 39704, June 27, 2000; 68 FR 7439, Feb.
14, 2003; 68 FR 64557, Nov. 14, 2003; 69 FR 63327, Nov. 1, 2004]
Sec. 204.7004 Supplementary PII numbers.
(a) Uses of the supplementary number. Use supplementary numbers with
the basic PII number, to identify--
(1) Amendments to solicitations;
(2) Modifications to contracts and agreements, including provisioned
item orders; and
(3) Calls or orders under contracts, basic ordering agreements, or
blanket purchase agreements, issued by the contracting office or by a
DoD activity other than the contracting office, including DoD orders
against Federal supply schedules.
(b) Amendments to solicitations. Number amendments to solicitations
sequentially using a four position numeric serial number added to the
basic PII number and beginning with 0001, e.g., N00062-91-R-1234-0001.
(c) Modifications to contracts and agreements. (1) Number
modifications to contracts and agreements using a six position alpha-
numeric added to the basic PII number.
[[Page 28]]
(2) Position 1. Identify the office issuing the modification--
(i) Contract administration office--A
(ii) Contracting office--P
(3) Positions 2 through 3. These are the first two digits in a
serial number. They may be either alpha or numeric. Use the letters K,
L, M, N, P, Q, S, T, U, V, W, X, Y, or Z only in the second position and
only in the following circumstances--
(i) Use K, L, M, N, P, and Q in the second position only if the
modification is issued by the Air Force and is a provisioned item order.
(ii) Use S, and only S, in the second position to identify
modifications issued to provide initial or amended shipping instructions
when--
(A) The contract has either FOB origin or destination delivery
terms; and
(B) The price changes.
(iii) Use T, U, V, W, X, or Y, and only those characters, in the
second position to identify modifications issued to provide initial or
amended shipping instructions when--
(A) The contract has FOB origin delivery terms; and
(B) The price does not change.
(iv) Only use Z in the second position to identify a modification
which definitizes a letter contract.
(4) Positions 4 through 6. These positions are always numeric. Use a
separate series of serial numbers for each type of modification listed
in paragraph (c)(3) of this section. Examples of proper numbering for
positions 2-6 (the first position will be either ``A'' or ``P'') are as
follows:
------------------------------------------------------------------------
Provisioned items
order (reserved for Shipping
Normal modification exclusive use by instructions
the Air Force only)
------------------------------------------------------------------------
00001-99999.................... K0001-K9999 S0001-S9999
then......................... KA001-KZ999 SA001-SZ999
A0001-A9999.................... L0001-L9999 T0001-T9999
B0001-B9999.................... LA001-LZ999 TA001-TZ999
and so on to................. M0001-M9999 U0001-U9999
H0001-H9999.................... MA001-MZ999 UA001-UZ999
then......................... N0001-N9999 V0001-V9999
J0001-J9999.................... NA001-NZ999 VA001-VZ999
then......................... P0001-P9999 W0001-W9999
R0001-R9999.................... PA001-PZ999 WA001-WZ999
then......................... Q0001-Q9999 X0001-X9999
AA001-HZ999.................... QA001-QZ999 XA001-XZ999
then......................... ................... Y0001-Y9999
JA001-JZ999.................... ................... YA001-YZ999
RA001-RZ999....................
------------------------------------------------------------------------
(5) If the contract administration office is changing the contract
administration or disbursement office for the first time and is using
computer generated modifications to notify many offices, it uses the six
position supplementary number ARZ999. If either office has to be changed
again during the life of the contract, the supplementary number will be
ARZ998, and on down as needed.
(6) Each office authorized to issue modifications shall assign the
supplementary identification numbers in sequence. Do not assign the
numbers until it has been determined that a modification is to be
issued.
(d) Delivery orders under indefinite delivery contracts, orders
under basic ordering agreements, and calls under blanket purchase
agreements. (1) Calls or orders issued by the office issuing the
contract or agreement. Use a four position alpha-numeric call or order
serial number added to the basic PII number. These shall be identified
by using serial numbers beginning 0001 through 9999. When the numeric
identifiers run out, use alpha characters in the third and fourth
positions. Never use alpha characters in the first and second positions.
(2) Orders placed against another activity's contract or agreement.
(i) If the office placing the order or call is different from the
office identified in the basic PII number, assign a serial number to the
order or call. The first and second positions contain the call/order
code assigned to the ordering office in accordance with 204.7005. Do not
use the letters A or P in the first position. The third and fourth
positions are a two position serial number assigned by the ordering
office. The series will begin with 01. When the numbers exceed 99, the
office will assign a uniform series of identifiers containing alpha and/
or numeric characters, e.g., Basic : N00383-91-D-0001 serial
: TU01.
(ii) If an office is placing calls or orders with NIB, NISH, or
UNICOR, the office shall identify the instrument with a 13 position
supplementary PII number using an F in the 9th position. Modifications
to these calls or orders shall be numbered in accordance with paragraph
(c) of this section, e.g.,
[[Page 29]]
Order : DLA100-91-F-0001 modification : A00001.
(e) Modifications to calls or orders. Use a two position alpha-
numeric suffix, known as a call or order modification indicator, to
identify a modification to a call or order.
(1) Modifications to a call or order issued by a purchasing office
begin with 01, 02, and so on through 99, then B1 through B9, BA through
BZ, C1 through C9, and so on through ZZ.
(2) Modifications to a call or order issued by a contract
administration office begin with 1A, 1B, and so on through 9Z, followed
by A1, A2, and so on to A9, then AA, AB, and so on through AZ.
[64 FR 43099, Aug. 9, 1999, as amended at 68 FR 64557, Nov. 14, 2003]
Sec. 204.7005 Assignment of order codes.
(a) The Defense Logistics Agency, Acquisition Policy Branch (J-
3311), Fort Belvoir, VA 22060-6221, is the executive agent for
maintenance of code assignments for use in the first two positions of an
order number when an activity places an order against another activity's
contract or agreement (see 204.7004(d)(2)). The executive agent
distributes blocks of two-character order codes to department/agency
monitors for further assignment.
(b) Contracting activities submit requests for assignment of or
changes in two-character order codes to their respective monitors in
accordance with department/agency procedures. Order code monitors--
(1) Approve requests for additions, deletions, or changes; and
(2) Provide notification of additions, deletions, or changes to--
(i) The executive agent; and
(ii) The executive editor, Defense Acquisition Regulations,
OUSD(AT&L)DPAP(DAR), 3062 Defense Pentagon, Washington, DC 20301-3062.
(c) Order code monitors are--
Army: Army Contracting Agency, Attn: SFCA-IT, 5109 Leesburg Pike, Suite
302, Falls Church, VA 22041-3201
Navy and Marine Corps: Office of the Assistant Secretary of the Navy
(RD&A), 1000 Navy Pentagon, Room BF992, Washington, DC 20350-1000
Air Force: SAF/AQCX, 1060 Air Force Pentagon, Washington, DC 20330-1060
Defense Logistics Agency: Defense Logistics Agency, Acquisition Policy
Branch (J-3311), John J. Kingman Road, Fort Belvoir, VA 22060-6221
Other Defense Agencies: Army Contracting Agency, Attn: SFCA-IT 5109
Leesburg Pike, Suite 302, Falls Church, VA 22041-3201
(d) Order code assignments can be found at http://www.acq.osd.mil/
dpap/dfars/ordercode.htm.
[68 FR 64557, Nov. 14, 2003, as amended at 69 FR 63327, Nov. 1, 2004]
Subpart 204.71_Uniform Contract Line Item Numbering System
Sec. 204.7100 Scope.
This subpart prescribes policies and procedures for assigning
contract line item numbers.
Sec. 204.7101 Definitions.
Accounting classification reference number (ACRN) means a two
position alpha or alpha/numeric control code used as a method of
relating the accounting classification citation to detailed line item
information contained in the schedule.
Attachment means any documentation, appended to a contract or
incorporated by reference, which does not establish a requirement for
deliverables.
Definitized item, as used in this subpart, means an item for which a
firm price has been established in the basic contract or by
modification.
Exhibit means a document, referred to in a contract, which is
attached and establishes requirements for deliverables. The term shall
not be used to refer to any other kind of attachment to a contract. The
DD Form 1423, Contract Data Requirements List, is always an exhibit,
rather than an attachment.
Nonseverable deliverable, as used in this subpart, means a
deliverable item that is a single end product or undertaking, entire in
nature, that cannot be feasibly subdivided into discrete elements or
phases without losing its identity.
Undefinitized item, as used in this subpart, means an item for which
a price
[[Page 30]]
has not been established in the basic contract or by modification.
[56 FR 36289, July 31, 1991, as amended at 60 FR 34468, July 3, 1995]
Sec. 204.7102 Policy.
(a) The numbering procedures of this subpart shall apply to all--
(1) Solicitations;
(2) Solicitation line and subline item numbers, if practicable;
(3) Contracts as defined in FAR Subpart 2.1;
(4) Contract line and subline item numbers;
(5) Exhibits;
(6) Exhibit line and subline items; and
(7) Any other document expected to become part of the contract.
(b) The numbering procedures are mandatory for all contracts where
separate contract line item numbers are assigned, unless--
(1) There are no postaward contract administration functions that
the contracting officer will assign to an office listed in the Federal
Directory of Contract Administration Services Components;
(2) The contract is an indefinite delivery type for petroleum
products against which posts, camps, and stations issue delivery orders
for products to be consumed by them; or
(3) The contract is a communications service authorization issued by
the Defense Information Systems Agency's Defense Information Technology
Contracting Organization.
[56 FR 36289, July 31, 1991, as amended at 56 FR 67212, Dec. 30, 1991;
60 FR 34468, July 3, 1995; 64 FR 61028, Nov. 9, 1999]
Sec. 204.7103 Contract line items.
Sec. 204.7103-1 Criteria for establishing.
Contracts shall identify the items or services to be acquired as
separate contract line items unless it is not feasible to do so.
(a) Contract line items shall have all four of the following
characteristics; however, there are exceptions within the
characteristics, which may make establishing a separate contract line
item appropriate even though one of the characteristics appears to be
missing--
(1) Single unit price. The item shall have a single unit price or a
single total price, except--
(i) If the item is not separately priced (NSP) but the price is
included in the unit price of another contract line item, enter NSP
instead of the unit price;
(ii) When there are associated subline items, established for other
than informational reasons, and those subline items are priced in
accordance with 204.7104;
(iii) When the items or services are being acquired on a cost-
reimbursement contract;
(iv) When the contract is for maintenance and repair services (e.g.,
a labor hour contract) and firm prices have been established for
elements of the total price of an item but the actual number and
quantity of the elements are not known until performance. The
contracting officer may structure these contracts to reflect a firm or
estimated total amount for each line item;
(v) When the contract line item is established to refer to an
exhibit or an attachment (if management needs dictate that a unit price
be entered, the price shall be set forth in the item description block
and enclosed in parentheses); or
(vi) When the contract is an indefinite delivery type contract and
provides that the price of an item shall be determined at the time a
delivery order is placed and the price is influenced by such factors as
the quantity ordered (e.g., 10-99 @ $1.00, 100-249 @ $.98, 250+ @ $.95),
the destination, the FOB point, or the type of packaging required.
(2) Separately identifiable. A contract line item must be identified
separately from any other items or services on the contract.
(i) Supplies are separately identifiable if they have no more than
one--
(A) National stock number (NSN);
(B) Item description; or
(C) Manufacturer's part number.
(ii) Services are separately identifiable if they have no more than
one--
(A) Scope of work; or
(B) Description of services.
(iii) This requirement does not apply if there are associated
subline items,
[[Page 31]]
established for other than informational reasons, and those subline
items include the actual detailed identification in accordance with
204.7104. Where this exception applies, use a general narrative
description instead of the contract item description.
(3) Separate delivery schedule. Each contract line item or service
shall have its own delivery schedule, period of performance, or
completion date expressly stated (``as required'' constitutes an
expressly stated delivery term).
(i) The fact that there is more than one delivery date, destination,
performance date, or performance point may be a determining factor in
the decision as to whether to establish more than one contract line
item.
(ii) If a contract line item has more than one destination or
delivery date, the contracting officer may create individual contract
line items for the different destinations or delivery dates, or may
specify the different delivery dates for the units by destination in the
delivery schedule.
(4) Single accounting classification citation. (i) Each contract
line item shall reference a single accounting classification citation
except as provided in paragraph (a)(4)(ii) of this subsection.
(ii) The use of multiple accounting classification citations for a
contract line item is authorized in the following situations:
(A) A single, nonseverable deliverable to be paid for with R&D or
other funds properly incrementally obligated over several fiscal years
in accordance with DoD policy;
(B) A single, nonseverable deliverable to be paid for with different
authorizations or appropriations, such as in the acquisition of a
satellite or the modification of production tooling used to produce
items being acquired by several activities; or
(C) A modification to an existing contract line item for a
nonseverable deliverable that results in the delivery of a modified
item(s) where the item(s) and modification are to be paid for with
different accounting classification citations.
(iii) When the use of multiple accounting classification citations
is authorized for a single contract line item, establish informational
subline items for each accounting classification citation in accordance
with 204.7104-1(a).
(b) Exhibits may be used as an alternative to putting a long list of
contract line items in the schedule. If exhibits are used, create a
contract line item citing the exhibit's identifier. See 204.7105(a).
(c) If the contract involves a test model or a first article which
must be approved, establish a separate contract line item or subline
item for each item of supply or service which must be approved. If the
test model or first article consists of a lot composed of a mixture of
items, a single line item or subline item may be used for the lot.
(d) If a supply or service involves ancillary functions, like
packaging and handling, transportation, payment of state or local taxes,
or use of reusable containers, and these functions are normally
performed by the contractor and the contractor is normally entitled to
reimbursement for performing these functions, do not establish a
separate contract line item solely to account for these functions.
However, do identify the functions in the contract schedule. If the
offeror separately prices these functions, contracting officers may
establish separate contract line items for the functions; however, the
separate line items must conform to the requirements of paragraph (a) of
this subsection.
[56 FR 36289, July 31, 1991, as amended at 60 FR 34468, July 3, 1995; 60
FR 43191, Aug. 18, 1995]
Sec. 204.7103-2 Numbering procedures.
(a) Contract line items shall consist of four numeric digits 0001
through 9999. Do not use numbers beyond 9999. Within a given contract,
the item numbers shall be sequential but need not be consecutive.
(b) The contract line item number shall be the same as the
solicitation line item number unless there is a valid reason for using
different numbers.
(c) Once a contract line item number has been assigned, it shall not
be assigned to another, different, contract line item in the same
contract.
[[Page 32]]
Sec. 204.7104 Contract subline items.
Sec. 204.7104-1 Criteria for establishing.
Contract subline items provide flexibility to further identify
elements within a contract line item for tracking performance or
simplifying administration. There are only two kinds of subline items:
those which are informational in nature and those which consist of more
than one item that requires separate identification.
(a) Informational subline items. (1) This type of subline item
identifies information that relates directly to the contract line item
and is an integral part of it (e.g., parts of an assembly or parts of a
kit). These subline items shall not be scheduled separately for
delivery, identified separately for shipment or performance, or priced
separately for payment purposes.
(2) The informational subline item may include quantities, prices,
or amounts, if necessary to satisfy management requirements. However,
these elements shall be included within the item description in the
supplies/services column and enclosed in parentheses to prevent
confusing them with quantities, prices, or amounts that have contractual
significance. Do not enter these elements in the quantity and price
columns.
(3) Informational subline items shall be used to identify each
accounting classification citation assigned to a single contract line
item number when use of multiple citations is authorized (see 204.7103-
1(a)(4)(ii)).
(b) Separately identified subline items. (1) Subline items will be
used instead of contract line items to facilitate payment, delivery
tracking, contract funds accounting, or other management purposes. Such
subline items shall be used when items bought under one contract line
item number--
(i) Are to be paid for from more than one accounting classification.
A subline item shall be established for the quantity associated with the
single accounting classification citation. Establish a line item rather
than a subline item if it is likely that a subline item may be assigned
additional accounting classification citations at a later date. Identify
the funding as described in 204.7104-1(a)(3);
(ii) Are to be packaged in different sizes, each represented by its
own NSN;
(iii) Have collateral costs, such as packaging costs, but those
costs are not a part of the unit price of the contract line item;
(iv) Have different delivery dates or destinations or requisitions,
or a combination of the three; or
(v) Identify parts of an assembly or kit which--
(A) Have to be separately identified at the time of shipment or
performance; and
(B) Are separately priced.
(2) Each separately identified contract subline item shall have its
own--
(i) Delivery schedule, period of performance, or completion date;
(ii) Unit price or single total price or amount (not separately
priced (NSP) is acceptable as an entry for price or amount if the price
is included in another subline item or a different contract line item).
This requirement does not apply--
(A) If the subline item was created to refer to an exhibit or an
attachment. If management needs dictate that a unit price be entered,
the price shall be set forth in the item description block of the
schedule and enclosed in parentheses; or
(B) In the case of indefinite delivery contracts described at
204.7103-1(a)(1)(vi).
(iii) Identification (e.g., NSN, item description, manufacturer's
part number, scope of work, description of services).
(3) Unit prices and extended amounts.
(i) The unit price and total amount for all subline items may be
entered at the contract line item number level if the unit price for the
subline items is identical. If there is any variation, the subline item
unit prices shall be entered at the subline item level only.
(ii) The unit price and extended amounts may be entered at the
subline items level.
(iii) The two methods in paragraphs (b)(3) (i) and (ii) of this
subsection shall not be combined in a contract line item.
(iv) When the price for items not separately priced is included in
the price of another subline item or contract
[[Page 33]]
line item, it may be necessary to withhold payment on the priced subline
item until all the related subline items that are not separately priced
have been delivered. In those cases, use the clause at 252.204-7002,
Payment for Subline Items Not Separately Priced.
[56 FR 36289, July 31, 1991, as amended at 60 FR 34468, July 3, 1995; 68
FR 75200, Dec. 30, 2003]
Sec. 204.7104-2 Numbering procedures.
(a) Number subline items by adding either two numeric characters or
two alpha characters to the basic contract line item number.
(1) Information subline item numbers. Use numeric characters only
for information subline items, running 01 through 99. Do not use spaces
or special characters to separate the subline item number from the
contract line item number that is its root. For example, if the contract
line item number is 0001, the first three subline items would be 000101,
000102, and 000103. Do not use a designation more than once within a
contract line item.
(2) Separately identified subline items. Use alpha characters only
for separately identified subline items, running AA through ZZ. Do not
use spaces or special characters to separate the subline item number
from the contract line item number that is its root. For example, if the
contract line item number is 0001, the first three subline items would
be 0001AA, 0001AB, and 0001AC.
(i) Do not use the letters I or O as alpha characters.
(ii) Use all 24 available alpha characters in the second position
before selecting a different alpha character for the first position. For
example, AA, AB, AC, through AZ before beginning BA, BB, and BC.
(b) Within a given contract line item, the subline item numbers
shall be sequential but need not be consecutive.
(c) Exhibits may be used as an alternative to setting forth in the
schedule a long list of contract subline items. If exhibits are used,
create a contract subline item citing the exhibit's identifier. See
204.7105.
(d) If a contract line item involves ancillary functions, like
packaging and handling, transportation, payment of state or local taxes,
or use of reusable containers, and these functions are normally
performed by the contractor and the contractor is normally entitled to
reimbursement for performing these functions, do not establish a
separate subline item solely to account for these functions. However, do
identify the functions in the contract schedule. If offeror separately
prices these functions, then contracting officers may establish separate
subline items for the functions; however, the separate subline items
must conform to the requirements of 204.7104-1.
(e) The following examples illustrate subline items numbering--
(1) Subline items structured to identify destinations for identical
items, identically priced (delivery schedule shall be established for
each subline item, not the contract line item).
----------------------------------------------------------------------------------------------------------------
Item No. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0001 NSN 1615-00-591-6620 Shim, ........... ................. ........... ...........
Aluminum Alloy, Apbl,
Rotor, Helicopter PRON A1-
9-63821-M1-M1 ACRN:AA.
0001AA A3168R-9030-4025 A2537M 10 EA $100.00 $1,000.00
IPD: 2 RDD: 334 PROJ: 501.
0001AB A3168R-9030-4026 A51AXBM 10 EA $100.00 $1,000.00
IPD: 2 RDD: 325 PROJ: 502.
0001AC A3168R-9030-4027 A67KBCM 15 EA $100.00 $1,500.00
IPD: 2 RDD: 349 PROJ: 503.
----------------------------------------------------------------------------------------------------------------
(2) Subline items structured to identify destinations for identical
items, not identically priced (delivery schedule shall be established
for each subline item, not the contract line item).
[[Page 34]]
----------------------------------------------------------------------------------------------------------------
Item No. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0001 NSN 1615-00-591-6620 Shim, ........... ................. ........... ...........
Aluminum Alloy, Apbl,
Rotor, Helicopter PRON A1-
9-63821-M1-M1 ACRN:AA.
0001AA A3168R-9030-4025 A2537M 10 EA $100.00 $1,000.00
IPD: 2 RDD: 334 PROJ: 501.
0001AB A3168R-9030-4026 A51AXBM 20 EA $99.00 $1,980.00
IPD: 2 RDD: 325 PROJ: 502.
0001AC A3168R-9030-4027 A67KBCM 30 EA $98.00 $2,940.09
IPD: 2 RDD: 349 PROJ: 503.
----------------------------------------------------------------------------------------------------------------
Note: Difference in prices for identical items is due to separate destinations for FOB destination delivery.
(3) Subline items structured to identify different sizes of an item
that are identically priced (delivery schedule shall be established for
each subline item, not the contract line item).
----------------------------------------------------------------------------------------------------------------
Item No. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0013 Boots Insulated, Cold ........... PR $38.35 $13,422.50
Weather White, Type II,
Class 1.
0013AA 8430-00-655-5541 Size 5N... 50 ................. ........... ...........
0013AB 8430-00-655-5544 Size 8N... 70 ................. ........... ...........
0013AC 8430-00-655-5551 Size 9N... 30 ................. ........... ...........
0013AD 8430-00-655-5535 Size 9R... 200 ................. ........... ...........
----------------------------------------------------------------------------------------------------------------
Note: Unit price and total amount shown at line item level rather than at subline item level.
(4) Subline items structured to identify different sizes of an item
that are not identically priced (delivery schedule shall be established
for each subline item, not the contract line item).
----------------------------------------------------------------------------------------------------------------
Item No. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0002 Body Armor Ground Troops ........... ................. ........... ...........
Variable Type Small Arms,
Fragmentation Protective
Nylon Felt Vest, Front and
Back Plates, Ceramic
Plate, Type I.
0002AA First Article.............. 1 LO NSP ...........
0002AB 8470-00-141-0935, Medium 1936 SE $331.77 $642,306.72
Regular.
0002AC 8470-00-141-0936, Large 625 SE 355.77 222,356.25
Regular.
0002AD 8470-00-141-0937, Medium 1237 SE 346.77 428,954.49
Long.
0002AE 8470-00-141-0938, Large 804 SE 365.77 294,079.08
Long.
----------------------------------------------------------------------------------------------------------------
(5) Subline items structured to provide the capability for relating
subordinate separately priced packaging costs to the overall contract
line item. (Separate delivery schedules shall be established for the
subline item identifying the contractor's product and for the subline
item identifying packaging. No schedule will be established for the
contract line item.)
----------------------------------------------------------------------------------------------------------------
Item No. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0001 6105-00-635-6568 50380
Ref No 63504-WZ Armature
0001AA 6105-00-635-6568 50380 2 Ea............. $2,895.87 $5,791.74
Ref No 63504-WZ Armature
Motor ACRN:AA.
0001AB Packaging ACRN:AA....... 2 Ea............. $289.58 $579.16
----------------------------------------------------------------------------------------------------------------
(6) Subline items structured to identify different accounting
classifications for identical items (delivery schedule shall be
established for each subline item, not the contract line item).
[[Page 35]]
AJ: 17X150518350315069100000192B000000000000000000
AK: 17X150518370317569100000192B000000000000000000
AL: 17X150519350314369100000192B000000000000000000
----------------------------------------------------------------------------------------------------------------
Item no. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0002 Pulse Decoder, KY-312/A5Q- ........... EA $3,037.40
19.
0002AA Pulse Decoder, KY-312/A5Q- 2 ................. ........... 6,074.80
19 ACRN: AJ.
0002AB Pulse Decoder, K1Y-312/A5Q- 6 ................. ........... 18,224.40
19 ACRN: AK.
0002AC Pulse Decoder, KY-312/A5Q- 2 ................. ........... $6,074.80
19 ACRN: AL.
----------------------------------------------------------------------------------------------------------------
Note: Unit price may be shown at line item level and total amounts shown at subline item level.
(7) Informational subline items established to identify multiple
accounting classification citations assigned to a single contract line
item.
----------------------------------------------------------------------------------------------------------------
Item No. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0001 Air Vehicle................ 1 Ea $6,700,000 $6,700,000
000101 ACRN:AA $3,300,000
000102 ACRN:AB $2,000,000
000103 ACRN:AC $1,400,000
----------------------------------------------------------------------------------------------------------------
(8) Subline items structured to identify parts of an assembly
(delivery schedule and price shall be established for each identified
part at the subline item level, not for the assembly at the contract
line item level).
----------------------------------------------------------------------------------------------------------------
Item no. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0003 Automatic Degausing System ........... ................. ........... ...........
Consisting of: (2 ea @
$52,061; $104,122 total).
0003AA Switchboard................ 2 EA $52,061.00 $104,122.00
0003AB Remote Control Panel....... 2 EA NSP ...........
0003AC Power Supply (M Coil) SSM 2 EA NSP ...........
Type 145 Amps, 220 V DC).
0003AF Power Supply (A Coil) SSM 2 EA NSP ...........
Type (118 Amps, 220 V DC).
----------------------------------------------------------------------------------------------------------------
(9) Subline items structured to identify parts of a kit (delivery
schedule and price shall be established for each identified part at the
subline item level, not for the kit at the contract line item level).
----------------------------------------------------------------------------------------------------------------
Item no. Supplies/service Quantity Unit Unit price Amount
----------------------------------------------------------------------------------------------------------------
0031 Conversion Kit to Convert ........... ................. ........... ...........
Torpedo MK 45 Mod 0 to
Torpedo MK 45 Mod 1, (50
Kt @ $10,868.52; $543,426
total).
0031AA Integrator Assy LD 620106.. 50 EA $10,868.52 $543,426.00
0031AB Pulse Generator Assy LD 50 EA NSP ...........
587569.
0031AC Drive Shaft Assy LD 587559. 50 EA NSP ...........
0031BF Actual Panel Assy LD 542924 50 EA NSP ...........
----------------------------------------------------------------------------------------------------------------
Note: In this example, the prices of subline items 0031AB through 0031BF are included in the Integrator
Assembly.
[56 FR 36289, July 31, 1991, as amended at 60 FR 34468, July 3, 1995]
Sec. 204.7105 Contract exhibits and attachments.
(a) Use of exhibits. (1) Exhibits may be used instead of putting a
long list of contract line items or subline items in the contract
schedule. Exhibits are particularly useful in buying spare parts.
(2) When using exhibits, establish a contract line or subline item
and refer to the exhibit.
(3) Identify exhibits individually.
(4) Each exhibit shall apply to only one contract line item or
subline item, except--
(i) One exhibit may apply to one or more option line item(s) when
the data
[[Page 36]]
required under the exhibits is identical in all respects except the
period during which the option is to be exercised; and
(ii) An exhibit may apply to more than one contract line item if the
exhibit is not separately priced and the exhibit deliverable is
identical for all applicable contract line items.
(5) More than one exhibit may apply to a single contract line item.
(6) Data items on a DD Form 1423, Contract Data Requirements List,
may be either separately priced or not separately priced.
(i) Separately priced. When data are separately priced, enter the
price in only one place in the contract: in either Section B of the
contract schedule or on the DD Form 1423. Whichever place, display the
price there consistently.
(A) Section B. If the prices are entered in section B of the
schedule, detach Blocks 17 and 18 of the DD Form 1423 and file elsewhere
in the contract file. If the prices are entered on the DD Form 1423, do
not detach Blocks 17 and 18 of the DD Form 1423.
(B) DD Form 1423. If the prices are entered on the DD Form 1423, the
price of all separately priced deliverable data items attributable to a
line item shall be totalled and included, for information purposes, in
parentheses, below the supplies services for that line item, in section
B of the schedule.
(ii) NSP. Include prices in a priced contract line item or subline
item. Detach Blocks 17 and 18 of the DD Form 1423 and retain them
elsewhere as required.
(7) The contracting officer may append attachments to exhibits, as
long as the attachment does not identify a deliverable requirement which
has not been established by a contract or exhibit line or subline item.
(b) Numbering exhibits and attachments. (1) Use alpha characters to
identify exhibits. The alpha characters shall be either single or double
capital letters. Do not use the letters I or O.
(2) Exhibit identifiers need not be either consecutive or
sequential.
(3) Once an identifier has been assigned to an exhibit, do not use
it on another exhibit in the same contract.
(4) The identifier shall always appear in the first or first and
second positions of all applicable exhibit line item numbers.
(5) If the exhibit has more than one page, cite the procurement
instrument identification number, exhibit identifier, and applicable
contract line or subline item number on each page.
(6) Use numbers to identify attachments.
(c) Numbering exhibit line items and subline items--(1) Criteria for
establishing. The criteria for establishing exhibit line items and
subline items is the same as those for establishing contract line items
and subline items (see 204.7103 and 204.7104, respectively).
(2) Procedures for numbering. (i) Number items in an exhibit in a
manner similar to contract line items and subline items.
(ii) Number line items using a four position number.
(A) The first position or the first and second position contain the
exhibit identifier.
(B) The third and fourth positions contain the alpha or numeric
character serial numbers assigned to the line item.
(iii) Assign alpha or numeric characters to the line item on the
basis of the same criteria outlined in contract subline items at
204.7104.
(iv) Exhibit line item numbers shall be sequential within the
exhibit.
(3) Examples--(i) Two position serial number for double letter
exhibit identifier.
------------------------------------------------------------------------
Cumulative No. of line items Serial number sequence
------------------------------------------------------------------------
1-33................................ 01 thru 09, then OA thru OZ, then
34-67............................... 10 thru 19, then 1A thru 1Z, then
68-101.............................. 20 thru 29, then 2A thru 2Z, then
102-135............................. 30 thru 39, then 3A thru 3Z, then
136-169............................. 40 thru 49, then 4A thru 4Z, then
170-203............................. 50 thru 59, then 5A thru 5Z, then
204-237............................. 60 thru 69, then 6A thru 6Z, then
238-271............................. 70 thru 79, then 7A thru 7Z, then
272-305............................. 80 thru 89, then 8A thru 8Z, then
306-339............................. 90 thru 99, then 9A thru 9Z, then
340-373............................. A0 thru A9, then AA thru AZ, then
374-407............................. B0 thru B9, then BA thru BZ, then
408-441............................. C0 thru C9, then CA thru CZ, then
442-475............................. D0 thru D9, then DA thru DZ, then
476-509............................. E0 thru E9, then EA thru EZ, then
510-543............................. F0 thru F9, then FA thru FZ, then
544-577............................. G0 thru G9, then GA thru GZ, then
578-611............................. H0 thru H9, then HA thru HZ, then
612-645............................. J0 thru J9, then JA thru JZ, then
646-679............................. K0 thru K9, then KA thru KZ, then
680-713............................. L0 thru L9, then LA thru LZ, then
714-747............................. M0 thru M9, then MA thru MZ, then
748-781............................. N0 thru N9, then NA thru NZ, then
782-815............................. P0 thru P9, then PA thru PZ, then
816-849............................. Q0 thru Q9, then QA thru QZ, then
[[Page 37]]
850-883............................. R0 thru R9, then RA thru RZ, then
884-917............................. S0 thru S9, then SA thru SZ, then
918-951............................. T0 thru T9, then TA thru TZ, then
952-985............................. U0 thru U9, then UA thru UZ, then
986-1019............................ V0 thru V9, then VA thru VZ, then
1020-1053........................... W0 thru W9, then WA thru WZ, then
1054-1087........................... X0 thru X9, then XA thru XZ, then
1088-1121........................... Y0 thru Y9, then YA thru YZ, then
1122-1155........................... Z0 thru Z9, then ZA thru ZZ
------------------------------------------------------------------------
(ii) Three position numbers.
------------------------------------------------------------------------
Cumulative No. of line items Serial number sequence
------------------------------------------------------------------------
(ii) Three position numbers.
1-33................................ 001 thru 009, then 00A thru 00Z,
then
34-67............................... 010 thru 019, then 01A thru 101Z,
then
68-101.............................. 020 thru 029, then 02A thru 02Z,
then
102-135............................. 030 thru 039, then 03A thru 03Z
and so
136-305............................. on to
306-339............................. 090 thru 099, then 09A thru 09Z,
then
340-373............................. 0A0 thru 0A9, then 0AA thru 0AZ,
then
374-407............................. 0B0 thru 0B9, then 0BB thru 0BZ,
then
408-441............................. 0C0 thru 0C9, then 0CA thru 0CZ,
and
442-1121............................ so on to
1122-1155........................... 0Z0 thru 0Z9, then 0ZA thru 0ZZ,
then
1156-1189........................... 100 thru 109, then 10A thru 10Z,
then
1190-1223........................... 110 thru 119, then 11A thru 11Z,
then
1224-1257........................... 120 thru 129, then 12A thru 12Z,
and
1258-1461........................... so on to
1462-1495........................... 190 thru 199, then 19A thru 19Z,
then
1496-1529........................... 1A0 thru 1A9, then 1AA thru 1AZ,
then
1530-1563........................... 1B0 thru 1B9, then 1BA thru 1BZ,
and
1564-2277........................... so on to
2278-2311........................... 1Z0 thru 1Z9, then 1ZA thru 1ZB,
then
2312-2345........................... 200 thru 109, then 10A thru 10Z,
then
2346-2379........................... 210 thru 219, then 21A thru 21Z,
then
2380-2413........................... 220 thru 229, then 22A thru 22Z,
and
2414-2617........................... so on to
2618-2651........................... 290 thru 299, then 29A thru 29Z,
then
2652-2685........................... 2A0 thru 2A9, then 2AA thru 2AZ,
then
2686-2719........................... 2B0 thru 2B9, then 2BA thru 2BZ,
and
2720-3433........................... so on to
3434-3467........................... 2Z0 thru 2Z9, then 2ZA thru 2ZZ,
then
3468-3501........................... 300 thru 309, then 30Z thru 30Z,
and
3502-10403.......................... so on to
10404-10437......................... 900 thru 909, then 90A thru 90Z,
then
10438-10471......................... 910 thru 919, then 91A thru 91Z,
and
10472-10709......................... so on to
10710-10743......................... 990 thru 999, then 99A thru 99Z,
then
10744-10777......................... 9A0 thru 9A9, then 9AA thru 9AZ,
then
10778-10811......................... 9B0 thru 9B9, then 9BA thru 9BZ,
and
10812-11525......................... so on to
11526-11559......................... 9Z0 thru 9Z9, then 9ZA thru 9ZZ
------------------------------------------------------------------------
Sec. 204.7106 Contract modifications.
(a) If new items are added, assign new contract line or subline item
numbers or exhibit line item numbers, in accordance with the procedures
established at 204.7103, 204.7104, and 204.7105.
(b) Modifications to existing contract line items or exhibit line
items. (1) If the modification relates to existing contract line items
or exhibit line items, the modification shall refer to those item
numbers.
(2) If the contracting officer decides to assign new identifications
to existing contract or exhibit line items, the following rules apply--
(i) Definitized and undefinitized items. (A) The original line item
or subline item number may be used if the modification applies to the
total quantity of the original line item or subline.
(B) The original line item or subline item number may be used if the
modification makes only minor changes in the specifications of some of
the items ordered on the original line item or subline item and the
resulting changes in unit price can be averaged to provide a new single
unit price for the total quantity. If the changes in the specifications
make the item significantly distinguishable from the original item or
the resulting changes in unit price cannot be averaged, create a new
line item.
(C) If the modification affects only a partial quantity of an
existing contract or exhibit line item or subline item and the change
does not involve either the delivery date or the ship-to/mark-for data,
the original contract or exhibit line item or subline item number shall
remain with the unchanged quantity. Assign the changed quantity the next
available number.
(ii) Undefinitized items. In addition to the rules in paragraph
(b)(2)(i), the following additional rules apply to undefinitized items--
(A) If the modification is undefinitized and increases the quantity
of an existing definitized item, assign the undefinitized quantity the
next available number.
(B) If the modification increases the quantity of an existing
undefinitized item, the original contract or exhibit line item or
subline item may be used if the unit price for the new quantity is
expected to be the same as the price for the original quantity. If the
unit prices of the two quantities will be different, assign the new
quantity the next available number.
(C) If the modification both affects only a partial quantity of the
existing contract or exhibit line or subline item and definitizes the
price for the affected portion, the definitized portion shall retain the
original item number. If there is any undefinitized portion of
[[Page 38]]
the item, assign it the next available number. However, if the
modification definitizes the price for the whole quantity of the line
item, and price impact of the changed work can be apportioned equally
over the whole to arrive at a new unit price, the quantity with the
changes can be added into the quantity of the existing item.
(D) If the modification affects only a partial quantity of an
existing contract or exhibit line or subline item but does not change
the delivery schedule or definitize price, the unchanged portion shall
retain the original contract or exhibit line or subline item number.
Assign the changed portion the next available number.
Sec. 204.7107 Contract accounting classification reference number (ACRN).
(a) When a contract contains more than one accounting classification
citation, contracting offices shall use ACRNs. Assigning the ACRNs is
the responsibility of the contracting office issuing the contract, basic
ordering agreement, or blanket purchase agreement. This authority shall
not be delegated. If more than one office will use the contract (e.g.,
ordering officers, other contracting officers), the contract must
contain instructions for assigning ACRNs.
(b) ACRNs are used to process certain contract data through the
Military Standard Contract Administration Procedures (MILSCAP) system.
The MILSCAP system uses the ACRN to relate certain contract
administration records to the accounting classification citation used to
obligate funds on the contract. Among these records are the accounting
classification trailer record, the supplies schedules data record, and
the services line item data record. ACRNs are also used to associate the
various record formats of the contract payment notice as described in
chapter 9 of the MILSCAP Manual, DoD 4000.25-5-M.
(c) Procedures for establishing ACRNs. ACRNs consist of a two
position alpha or alpha/numeric code assigned to each discrete
accounting classification citation within each contract. ACRNs shall be
established in accordance with the following guidelines:
(1) Do not use the letters I and O.
(2) In no case shall an ACRN apply to more than one accounting
classification citation, nor shall more than one ACRN be assigned to one
accounting classification citation.
(d) Using the ACRN in the contract. (1) Show the ACRN as a detached
prefix to the accounting classification citation in the accounting and
appropriation data block or, if there are too many accounting
classification citations to fit reasonably in that block, in section G
(Contract Administration Data).
(2) ACRNs need not prefix accounting classification citations if the
accounting classification citations are present in the contract only for
the transportation officer to cite to Government bills of lading.
(3) If the contracting officer is making a modification to a
contract and using the same accounting classification citations, which
have had ACRNs assigned to them, the modification need cite only the
ACRNs in the accounting and appropriations data block or on the
continuation sheets.
(e) Showing the ACRN in the contract. If there is more than one ACRN
in a contract, all the ACRNs will appear in several places in the
schedule (e.g., ACRN:AA).
(1) Ship-to/mark-for block. Show the ACRN beside the identity code
of each activity in the ship-to/mark-for block unless only one
accounting classification citation applies to a line item or subline
item. Only one ACRN may be assigned to the same ship-to/mark-for within
the same contract line or subline item number unless multiple accounting
classification citations apply to a single nonseverable deliverable unit
such that the item cannot be related to an individual accounting
classification citation.
(2) Supplies/services column. (i) If only one accounting
classification citation applies to a line item or a subline item, the
ACRN may be shown in the supplies/services column near the item
description.
(ii) If more than one accounting classification citation applies to
a single contract line item, identify each assigned ACRN and the amount
of associated funds using informational subline items (see 204.7104-
1(a)).
[[Page 39]]
(3) Payment instructions. (i) When a contract line item is funded by
multiple accounting classification citations, the contracting officer
shall provide adequate instructions in section G (Contract
Administration Data), under the heading ``Payment Instructions for
Multiple Accounting Classification Citations,'' to permit the paying
office to charge the accounting classification citations assigned to
that contract line item (see 204.7104-1(a)) in a manner that reflects
the performance of work on the contract. If additional accounting
classification citations are subsequently added, the payment
instructions must be modified to include the additional accounting
classification citations.
(ii) Payment instructions shall provide a methodology for the paying
office to assign payments to the appropriate accounting classification
citation(s), based on anticipated contract work performance. The method
established should be consistent with the reasons for the establishment
of the line items. The payment method may be based upon a unique
distribution profile devised to reflect how the funds represented by
each of the accounting classification citations support contract
performance. Payment methods that direct that payments be made from the
earliest available fiscal year funding sources, or that provide for
proration across accounting classification citations assigned to the
line item, or a combination thereof, may be used if that methodology
reasonably reflects how each of the accounting classification citations
supports contract performance.
[60 FR 34469, July 3, 1995; 60 FR 43191, Aug. 18, 1995]
Subpart 204.72_Contractor Identification
Sec. 204.7200 Scope of subpart.
This subpart prescribes uniform policies and procedures for
identification of commercial and Government entities when it is
necessary to--
(a) Exchange data with another contracting activity, including
contract administration activities and contract payment activities, or
comply with the reporting requirements of subpart 204.6; or
(b) Identify contractors for the purpose of developing computerized
acquisition systems or solicitation mailing lists.
[64 FR 43099, Aug. 9, 1999]
Sec. 204.7201 Definitions.
(a) Commercial and Government Entity (CAGE) code means--
(1) A code assigned by the Defense Logistics Information Service
(DLIS) to identify a commercial or Government entity; or
(2) A code assigned by a member of the North Atlantic Treaty
Organization (NATO) that DLIS records and maintains in the CAGE master
file. This type of code is known as an ``NCAGE code.''
(b) Contractor identification code means a code that the contracting
office uses to identify an offeror. The three types of contractor
identification codes are CAGE codes, Data Universal Numbering System
(DUNS) numbers, and Taxpayer Identification Numbers (TINs).
[64 FR 43099, Aug. 9, 1999]
Sec. 204.7202 General.
Sec. 204.7202-1 CAGE codes.
(a) DLIS assigns or records and maintains CAGE codes to identify
commercial and Government entities. DoD 4000.25-5-M, Military Standard
Contract Administration Procedures (MILSCAP), and Volume 7 of DoD
4100.39-M, Federal Logistics Information System (FLIS) Procedures
Manual, prescribe use of CAGE codes.
(b)(1) If a prospective contractor located in the United States must
register in the Central Contractor Registration (CCR) database (see FAR
Subpart 4.11) and does not have a CAGE code, DLIS will assign a CAGE
code when the prospective contractor submits its request for
registration in the CCR database. Foreign registrants must obtain a
North Atlantic Treaty Organization CAGE (NCAGE) code in order to
register in the CCR database. NCAGE codes may be obtained from the
Codification Bureau in the foreign
[[Page 40]]
registrant's country. Additional information on obtaining NCAGE codes is
available at http://www.dlis.dla.mil/Forms/Form--AC135.asp.
(2) If registration in the CCR database is not required, the
prospective contractor's CAGE code is not already available in the
contracting office, and the prospective contractor does not respond to
the provision at 252.204-7001, Commercial and Government Entity (CAGE)
Code Reporting, use the following procedures:
(i) To identify the prospective contractor's CAGE code, use--
(A) The monthly H-series CD ROM that contains the H-4/H-8 CAGE
master file issued by DLIS (Their address is: Customer Service, Federal
Center, 74 Washington Avenue, North, Battle Creek, MI 49017-3084. Their
telephone number is: toll-free 1-888-352-9333);
(B) The on-line access to the CAGE file through the Defense
Logistics Information System;
(C) The on-line access to the Defense Logistics Agency (DLA) CAGE
file through the DLA Network or dial-up capability; or
(D) The Internet to access the CAGE Lookup Server at http://
www.dlis.dla.mil/cage--welcome.asp.
(ii) If no CAGE code is identified through use of the procedures in
paragraph (b)(2)(i) of this subsection, ask DLIS to assign a CAGE code.
Submit a DD Form 2051, Request for Assignment of a Commercial and
Government Entity (CAGE) Code, (or electronic equivalent) to the address
in paragraph (b)(2)(i)(A) of this subsection, ATTN: DLIS-SBB. The
contracting office completes Section A of the DD Form 2051, and the
contractor completes Section B. The contracting office must verify
Section B before submitting the form.
(c) Direct questions on obtaining computer tapes, electronic
updates, or code assignments to DLIS Customer Service: toll-free (888)
227-2423 or (888) 352-9333; DSN 932-4725; or commercial (616) 961-4725.
[64 FR 43100, Aug. 9, 1999, as amended at 65 FR 63804, Oct. 25, 2000; 67
FR 49252, July 30, 2002; 68 FR 15380, Mar. 31, 2003; 68 FR 64558, Nov.
14, 2003]
Sec. 204.7202-2 DUNS numbers.
Requirements for use of DUNS numbers are in FAR 4.602(d) and 4.603.
[64 FR 43100, Aug. 9, 1999]
Sec. 204.7202-3 TINs.
Requirements for use of TINs are in FAR subpart 4.9.
[64 FR 43100, Aug. 9, 1999]
Sec. 204.7203 Responsibilities of contracting officers.
(a) Assist offerors in obtaining the required CAGE codes.
(b) Do not deny a potential offeror a solicitation package because
the offeror does not have a contractor identification code.
(c) Consider requesting a CAGE code at the time a potential offeror
is sent a solicitation package or added to the mailing list to ensure
that a code is assigned in sufficient time to process the DD Form 350,
Individual Contracting Action Report, without delay.
[64 FR 43100, Aug. 9, 1999]
Sec. 204.7204 Maintenance of the CAGE file.
(a) DLIS will accept written requests for changes to CAGE files,
other than name changes, from the following entities:
(1) The entity identified by the code. The entity must use company
letterhead to forward the request.
(2) The contracting office.
(3) The contract administration office.
(b) Submit requests for changes to CAGE files on DD Form 2051, or
electronic equivalent, to--Defense Logistics Information Service, DLIS-
SBB, Federal Center, 74 Washington Avenue, North, Battle Creek, MI
49017-3084. Telephone Numbers: toll-free (888) 352-9333, DSN 932-4725,
commercial (616) 961-4725. Facsimile: (616) 961-4388, 4485.
(c) The contracting officer responsible for execution of a change-
of-name agreement (see FAR subpart 42.12) must submit the agreement to
DLIS-SBB. If there are no current contracts, each contracting and
contract administration office receiving notification of changes from
the commercial entity
[[Page 41]]
must forward a copy of the change notice annotated with the CAGE code to
DLIS-SBB unless the change notice indicates that DLIS-SBB already has
been notified.
(d) Additional guidance for maintaining CAGE codes is in Volume 7 of
DoD 4100.39-M, Federal Logistics Information System (FLIS) Procedures
Manual.
[64 FR 43100, Aug. 9, 1999; 64 FR 46474, Aug. 25, 1999, as amended at 65
FR 63804, Oct. 25, 2000]
Sec. 204.7205 Novation agreements, mergers and sales of assets.
Contracting officers shall process and execute novation agreements
in accordance with FAR Subpart 42.12, Novation and Change-of-Name
Agreements. These actions are independent of code and name assignments
made as a result of the occasion which created the need for the novation
agreement. The maintenance activity will determine which entity(s) will
retain the existing code(s) and which entities will be assigned new
codes. The contracting officer responsible for processing the novation
agreement shall provide the maintenance activity with the following
information:
(a) Name(s), address(es), and code(s) of the contractor(s)
transferring the original contractual rights and obligations
(transferor).
(b) Name(s), address(es), and code(s) (if any) of the entity who is
the successor in interest (transferee).
(c) Name(s), address(es), and code(s) (if any) of the entity who is
retaining or receiving the rights to the technical data.
(d) Description of the circumstances surrounding the novation
agreement and especially the relationship of each entity to the other.
[56 FR 36289, July 31, 1991, as amended at 66 FR 49861, Oct. 1, 2001]
Sec. 204.7206 Using CAGE codes to identify agents and brokers.
Authorized agents and brokers are entities and, as such, may be
assigned CAGE codes for identification and processing purposes.
(a) A single CAGE code will be assigned to the agent/broker
establishment in addition to any codes assigned to the entities
represented by the agent/broker, i.e., only one code will be assigned to
a specific agent/broker entity regardless of the number of firms
represented by that agent/broker.
(b) Additional codes may be assigned to an agent/broker if they meet
the criteria for assigning additional codes for entities, e.g.,
different location.
(c) Codes will not be assigned to an agent/broker in care of the
entity being represented or in any way infer that the agent/broker is a
separate establishment bearing the name of the entity represented by the
agent/broker.
[56 FR 36289, July 31, 1991, as amended at 61 FR 51032, Sept. 30, 1996;
62 FR 48182, Sept. 15, 1997]
Sec. 204.7207 Solicitation provision.
Use the provision at 252.204-7001, Commercial and Government Entity
(CAGE) Code Reporting, in solicitations when--
(a) The solicitation does not include the clause at FAR 52.204-7,
Central Contractor Registration; and
(b) The CAGE codes for the potential offerors are not available to
the contracting office.
[66 FR 47097, Sept. 11, 2001, as amended at 68 FR 64558, Nov. 14, 2003]
[[Page 42]]
SUBCHAPTER B_ACQUISITION PLANNING
PART 205_PUBLICIZING CONTRACT ACTIONS--Table of Contents
Subpart 205.2_Synopses of Proposed Contract Actions
Sec.
205.203 Publicizing and response time.
205.207 Preparation and transmittal of synopses.
Subpart 205.3_Synopses of Contract Awards
205.303 Announcement of contract awards.
Subpart 205.4_Release of Information
205.470 Contract clause.
Subpart 205.5_Paid Advertisements
205.502 Authority.
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36302, July 31, 1991, unless otherwise noted.
Subpart 205.2_Synopses of Proposed Contract Actions
Sec. 205.203 Publicizing and response time.
(b) Allow at least 45 days response time when requested by a
qualifying or designated country source (as these terms are used in part
225) and the request is consistent with the Government's requirement.
Sec. 205.207 Preparation and transmittal of synopses.
(d)(i) For acquisitions being considered for historically black
college and university and minority institution set-asides under
226.7003--
(A) Cite the appropriate Numbered Note; and
(B) Include the notice at PGI 205.207(d)(i).
(ii) For broad agency announcement notices, see 235.016.
[69 FR 63328, Nov. 1, 2004]
Subpart 205.3_Synopses of Contract Awards
Sec. 205.303 Announcement of contract awards.
(a) Public announcement. (i) The threshold for DoD awards is $5
million. Report all contractual actions, including modifications, that
have a face value, excluding unexercised options, of more than $5
million.
(A) For undefinitized contractual actions, report the not-to-exceed
(NTE) amount. Later, if the definitized amount exceeds the NTE amount by
more than $5 million, report only the amount exceeding the NTE.
(B) For indefinite delivery, time and material, labor hour, and
similar contracts, report the initial award if the estimated face value,
excluding unexercised options, is more than $5 million. Do not report
orders up to the estimated value, but after the estimated value is
reached, report subsequent modifications and orders that have a face
value of more than $5 million.
(C) Do not report the same work twice.
(ii) Departments and agencies submit the information--
(A) To the Office of the Assistant Secretary of Defense (Public
Affairs);
(B) By the close of business the day before the date of the proposed
award;
(C) Using report control symbol DD-LA- (AR) 1279;
(D) Including, as a minimum, the following--
(1) Contract data. Contract number, modification number, or delivery
order number, face value of this action, total cumulative face value of
the contract, description of what is being bought, contract type,
whether any of the buy was for foreign military sales (FMS) and
identification of the FMS customer;
(2) Competition information. Number of solicitations mailed and
number of offers received;
(3) Contractor data. Name, address, and place of performance (if
significant work is performed at a different location);
[[Page 43]]
(4) Funding data. Type of appropriation and fiscal year of the
funds, and whether the contract is multiyear (see FAR Subpart 17.1); and
(5) Miscellaneous data. Identification of the contracting office,
the contracting office point of contact, known congressional interest,
and the information release date.
(iii) Departments and agencies, in accordance with department/agency
procedures and concurrent with the public announcement, shall provide
information similar to that required by paragraph (a)(ii) of this
section to members of Congress in whose state or district the contractor
is located and the work is to be performed.
[56 FR 36302, July 31, 1991, as amended at 56 FR 67212, Dec. 30, 1991]
Subpart 205.4_Release of Information
Sec. 205.470 Contract clause.
Use the clause at 252.205-7000, Provision of Information to
Cooperative Agreement Holders, in solicitations and contracts expected
to exceed $100,000,000. This clause implements 10 U.S.C. 2416.
[69 FR 63328, Nov. 1, 2004, as amended at 70 FR 8537, Feb. 22, 2005]
Subpart 205.5_Paid Advertisements
Sec. 205.502 Authority.
(a) Newspapers. Heads of contracting activities are delegated
authority to approve the publication of paid advertisements in
newspapers.
[69 FR 63328, Nov. 1, 2004]
PART 206_COMPETITION REQUIREMENTS--Table of Contents
Sec.
206.001 Applicability.
Subpart 206.2_Full and Open Competition After Exclusion of Sources
206.202 Establishing or maintaining alternative sources.
206.203 Set-asides for small business concerns.
Subpart 206.3_Other Than Full and Open Competition
206.302 Circumstances permitting other than full and open competition.
206.302-1 Only one responsible source and no other supplies or services
will satisfy agency requirements.
206.302-2 Unusual and compelling urgency.
206.302-3 Industrial mobilization; or engineering, development, or
research capability.
206.302-3-70 Solicitation provision.
206.302-4 International agreement.
206.302-5 Authorized or required by statute.
206.302-7 Public interest.
206.303 Justifications.
206.303-1 Requirements.
206.304 Approval of the justification.
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36303, July 31, 1991, unless otherwise noted.
Sec. 206.001 Applicability.
(b) As authorized by 10 U.S.C. 1091, contracts awarded to
individuals using the procedures at 237.104(b)(ii) are exempt from the
competitive requirements of FAR part 6.
(S-70) Also excepted from this part are follow-on production
contracts for products developed pursuant to the ``other transactions''
authority of 10 U.S.C. 2371 for prototype projects when--
(1) The other transaction agreement includes provisions for a
follow-on production contract;
(2) The contracting officer receives sufficient information from the
agreements officer and the project manager for the prototype other
transaction agreement, which documents that the conditions set forth in
10 U.S.C. 2371 note, subsections (f)(2) (A) and (B) (see 32 CFR 3.9(d)),
have been met; and
(3) The contracting officer establishes quantities and prices for
the follow-on production contract that do not exceed the quantities and
target prices established in the other transaction agreement.
[70 FR 2361, Jan. 13, 2005]
[[Page 44]]
Subpart 206.2_Full and Open Competition After Exclusion of Sources
Sec. 206.202 Establishing or maintaining alternative sources.
(a) Agencies may use this authority to totally or partially exclude
a particular source from a contract action.
(b) The determination and findings (D&F) and the documentation
supporting the D&F shall identify the source to be excluded from the
contract action. Include the information at PGI 206.202(b), as
applicable, and any other information that may be pertinent, in the
supporting documentation.
[69 FR 74991, Dec. 15, 2004]
Sec. 206.203 Set-asides for small business concerns.
(b) Also no separate justification or determination and findings is
required for contract actions processed as historically black college
and university and minority institution set-asides (see 226.7003).
[63 FR 41973, Aug. 6, 1998]
Subpart 206.3_Other Than Full and Open Competition
Sec. 206.302 Circumstances permitting other than full and open
competition.
Sec. 206.302-1 Only one responsible source and no other supplies
or services will satisfy agency requirements.
(a) Authority. (2)(i) Section 8059 of Pub. L. 101-511 and similar
sections in subsequent defense appropriations acts prohibit departments
and agencies from entering into contracts for studies, analyses, or
consulting services (see FAR subpart 37.2) on the basis of an
unsolicited proposal without providing for full and open competition,
unless--
(1) The head of the contracting activity, or a designee no lower
than chief of the contracting office, determines that--
(i) Following thorough technical evaluation, only one source is
fully qualified to perform the proposed work;
(ii) The unsolicited proposal offers significant scientific or
technological promise, represents the product of original thinking, and
was submitted in confidence; or
(iii) The contract benefits the national defense by taking advantage
of a unique and significant industrial accomplishment or by ensuring
financial support to a new product or idea;
(2) A civilian official of the DoD, whose appointment has been
confirmed by the Senate, determines the award to be in the interest of
national defense; or
(3) The contract is related to improvement of equipment that is in
development or production.
(b) Application. This authority may be used for acquisitions of test
articles and associated support services from a designated foreign
source under the DoD Foreign Comparative Testing Program.
[56 FR 36303, July 31, 1991, as amended at 57 FR 14992, Apr. 23, 1992;
58 FR 28463, May 13, 1993; 69 FR 74991, Dec. 15, 2004]
Sec. 206.302-2 Unusual and compelling urgency.
(b) Application. For guidance on circumstances under which use of
this authority may be appropriate, see PGI 206.302-2(b).
[69 FR 74991, Dec. 15, 2004]
Sec. 206.302-3 Industrial mobilization; or engineering, development,
or research capability.
Sec. 206.302-3-70 Solicitation provision.
Use the provision at 252.206-7000, Domestic Source Restriction, in
all solicitations that are restricted to domestic sources under the
authority of FAR 6.302-3.
Sec. 206.302-4 International agreement.
(c) Limitations. Pursuant to 10 U.S.C. 2304(f)(2)(E), the
justifications and approvals described in FAR 6.303 and 6.304 are not
required if the head of the contracting activity prepares a document
that describes the terms of an agreement or treaty or the written
directions, such as a Letter of Offer and Acceptance, that have the
effect of requiring the use of other than competitive procedures for the
acquisition.
[63 FR 67803, Dec. 9, 1998]
[[Page 45]]
Sec. 206.302-5 Authorized or required by statute.
(b) Application. Agencies may use this authority to--
(i) Acquire supplies and services from military exchange stores
outside the United States for use by the armed forces outside the United
States in accordance with 10 U.S.C. 2424(a) and subject to the
limitations of 10 U.S.C. 2424(b). The limitations of 10 U.S.C. 2424(b)
(1) and (2) do not apply to the purchase of soft drinks that are
manufactured in the United States. For the purposes of 10 U.S.C. 2424,
soft drinks manufactured in the United States are brand name carbonated
sodas, manufactured in the United States, as evidenced by product
markings.
(ii) Acquire police, fire protection, airfield operation, or other
community services from local governments at military installations to
be closed under the circumstances in 237.7401 (Section 2907 of Fiscal
Year 1994 Defense Authorization Act (Pub. L. 103-160)).
(c) Limitations. (i) 10 U.S.C. 2361 precludes use of this exception
for awards to colleges or universities for the performance of research
and development, or for the construction of any research or other
facility, unless--
(A) The statute authorizing or requiring award specifically--
(1) States that the statute modifies or supersedes the provisions of
10 U.S.C. 2361,
(2) Identifies the particular college or university involved, and
(3) States that award is being made in contravention of 10 U.S.C.
2361(a); and
(B) The Secretary of Defense provides Congress written notice of
intent to award. The contract cannot be awarded until 180 days have
elapsed since the date Congress received the notice of intent to award.
Contracting activities must submit a draft notice of intent with
supporting documentation through channels to the Director of Defense
Procurement and Acquisition Policy, Office of the Under Secretary of
Defense (Acquisition, Technology, and Logistics).
(ii) The limitation in paragraph (c)(i) of this subsection applies
only if the statute authorizing or requiring award was enacted after
September 30, 1989.
(iii) Subsequent statutes may provide different or additional
constraints on the award of contracts to specified colleges and
universities. Contracting officers should consult legal counsel on a
case-by-case basis.
[56 FR 36303, July 31, 1991, as amended at 57 FR 14992, Apr. 23, 1992;
58 FR 28463, May 13, 1993; 59 FR 36089, July 15, 1994; 60 FR 29497, June
5, 1995; 60 FR 40107, Aug. 7, 1995; 65 FR 39704, June 27, 2000; 68 FR
7439, Feb. 14, 2003]
Sec. 206.302-7 Public interest.
(c) Limitations. For the defense agencies, the written determination
to use this authority must be made by the Secretary of Defense.
Sec. 206.303 Justifications.
Sec. 206.303-1 Requirements.
(d) The Director of Defense Procurement and Acquisition Policy,
Office of the Under Secretary of Defense (Acquisition, Technology, and
Logistics), is the agency point of contact for submission of
justifications to the Office of the United States Trade Representative.
[56 FR 36303, July 31, 1991, as amended at 60 FR 61592, Nov. 30, 1995;
68 FR 15618, Mar. 31, 2003; 69 FR 74991, Dec. 15, 2004]
Sec. 206.304 Approval of the justification.
(a)(4) The Under Secretary of Defense (Acquisition, Technology, and
Logistics) may delegate this authority to--
(A) An Assistant Secretary of Defense; or
(B) For a defense agency, an officer or employee serving in,
assigned, or detailed to that agency who--
(1) If a member of the armed forces, is serving in a rank above
brigadier general or rear admiral (lower half); or
(2) If a civilian, is serving in a position with a grade under the
General Schedule (or any other schedule for civilian officers or
employees) that is comparable to or higher than the grade of major
general or rear admiral.
[61 FR 10285, Mar. 13, 1995, as amended at 61 FR 50451, Sept. 26, 1996;
65 FR 39704, June 27, 2000]
[[Page 46]]
PART 207_ACQUISITION PLANNING--Table of Contents
Subpart 207.1_Acquisition Plans
Sec.
207.102 Policy.
207.103 Agency-head responsibilities.
207.104 General procedures.
207.105 Contents of written acquisition plans.
207.106 Additional requirements for major systems.
207.170 Consolidation of contract requirements.
207.170-1 Scope.
207.170-2 Definitions.
207.170-3 Policy and procedures.
Subpart 207.4_Equipment Lease or Purchase
207.401 Acquisition considerations.
207.470 Statutory requirements.
207.471 Funding requirements.
Subpart 207.5_Inherently Governmental Functions
207.500 Scope of subpart.
207.503 Policy.
Subpart 207.70_Buy-to-Budget_Additional Quantities of End Items
207.7001 Definition.
207.7002 Authority to acquire additional quantities of end items.
207.7003 Limitation.
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36305, July 31, 1991, unless otherwise noted.
Subpart 207.1_Acquisition Plans
Sec. 207.102 Policy.
When a class justification for other than full and open competition
has been approved, planning for competition shall be accomplished
consistent with the terms of that approval.
[60 FR 61592, Nov. 30, 1995]
Sec. 207.103 Agency-head responsibilities.
(d)(i) Prepare written acquisition plans for--
(A) Acquisitions for development, as defined in FAR 35.001, when the
total cost of all contracts for the acquisition program is estimated at
$5 million or more;
(B) Acquisitions for production or services when the total cost of
all contracts for the acquisition program is estimated at $30 million or
more for all years or $15 million or more for any fiscal year; and
(C) Any other acquisition considered appropriate by the department
or agency.
(ii) Written plans are not required in acquisitions for a final buy
out or one-time buy. The terms ``final buy out'' and ``one-time buy''
refer to a single contract that covers all known present and future
requirements. This exception does not apply to a multiyear contract or a
contract with options or phases.
(e) Prepare written acquisition plans for acquisition programs
meeting the thresholds of paragraphs (d)(i) (A) and (B) of this section
on a program basis. Other acquisition plans may be written on either a
program or an individual contract basis.
(g) The program manager, or other official responsible for the
program, has overall responsibility for acquisition planning.
(i)(i) Apply design-to-cost principles--
(A) In all major defense acquisition programs (DoDD 5000.1, Defense
Acquisition), unless exempted by the Secretary of Defense; and
(B) To the acquisition of systems, subsystems, and components below
the thresholds for major defense acquisition programs, to the extent
prescribed by DoDD 5000.1.
(ii) Consider life-cycle-cost in all acquisitions of systems and
equipment.
(h) For procurement of conventional ammunition, as defined in DoDD
5160.65, Single Manager for Conventional Ammunition (SMCA)--
(i) The department or agency--
(A) Must submit the acquisition plan to the SMCA at the following
address: Program Executive Officer, Ammunition, ATTN: SFAE-AMO, Building
171, Picatinny Arsenal, NJ 07806-5000. Telephone: Commercial (973) 724-
7101; DSN 880-7101;
(B) Also must submit an acquisition plan to the SMCA for a new
procurement covered by a previously approved acquisition plan, if the
SMCA did not
[[Page 47]]
review the previously approved acquisition plan; and
(C) Must not proceed with the procurement until the SMCA provides
written concurrence with the acquisition plan.
(ii) The SMCA--
(A) Will review the acquisition plan to determine if it is
consistent with retaining national technology and industrial base
capabilities in accordance with 10 U.S.C. 2304(c)(3) and Section 806 of
Public law 105-261; and
(B) Will notify the department or agency of concurrence or non-
concurrence. In the case of a non-concurrence, the SMCA, with assistance
from the Army Office of the Executive Director for Conventional
Ammunition, will attempt to resolve the matter with the department or
agency. If no agreement is reached, the Assistant Secretary of the Army
(Acquisition, Logistics and Technology) will make the final decision on
the appropriate acquisition approach.
[56 FR 36305, July 31, 1991, as amended at 61 FR 50451, Sept. 26, 1996;
66 FR 47107, Sept. 11, 2001; 67 FR 61516, Oct. 1, 2002; 68 FR 15380,
Mar. 31, 2003]
Sec. 207.104 General procedures.
(b) The planner should forward the requirements information to the
contract administration organization when assistance in identification
of potential sources of supply is necessary, when an existing contract
is being modified or resolicited, or when contract administration
resource requirements will be affected.
[61 FR 50451, Sept. 26, 1996]
Sec. 207.105 Contents of written acquisition plans.
For acquisitions covered by 207.103(d)(i) (A) and (B), correlate the
plan to the DoD Future Years Defense Program, applicable budget
submissions, and the decision coordinating paper/program memorandum, as
appropriate. It is incumbent upon the planner to coordinate the plan
with all those who have a responsibility for the development,
management, or administration of the acquisition. The acquisition plan
should be provided to the contract administration organization to
facilitate resource allocation and planning for the evaluation,
identification, and management of contractor performance risk.
(a) Acquisition background and objectives--(1) Statement of need.
Include--
(A) Applicability of a decision coordinating paper (DCP),
acquisition decision memorandum, Defense Acquisition Board (DAB), and/or
internal service reviews. Describe the options in the DCP/acquisition
decision memorandum and delineate which option the acquisition plan
supports.
(B) The date approval for operational use has been or will be
obtained. If waivers are requested, describe the need for the waivers.
(C) A milestone chart depicting the acquisition objectives.
(D) Milestones for updating the acquisition plan. Indicate when the
plan will be updated. Program managers should schedule updates to
coincide with DAB reviews and the transition from one phase to another
(e.g., engineering and manufacturing development to production and
deployment).
(8) Acquisition streamlining. DoDD 5000.1, Defense Acquisition, and
DoD 5000.2-R, Mandatory Procedures for Major Defense Acquisition
Programs (MDAPs) and Major Automated Information System (MAIS)
Acquisition Programs, contain policy direction on acquisition
streamlining. See MIL-HDBK 248, Acquisition Streamlining, for guidance
on streamlining performance requirements, the technical package, and the
contract strategy.
(b) Plan of action--(4) Acquisition considerations. When supplies or
services will be acquired by placing an order under a non-DoD contract
(e.g., a Federal Supply Schedule contract), regardless of whether the
order is placed by DoD or by another agency on behalf of DoD, address
the method of ensuring that the order will be consistent with DoD
statutory and regulatory requirements applicable to the acquisition and
the requirements for use of DoD appropriated funds.
(5) Budgeting and funding. Include specific references to budget
line items and program elements, where applicable, estimated production
unit cost, and the total cost for remaining production.
[[Page 48]]
(6) Product descriptions. For development acquisitions, describe the
market research undertaken to identify commercial items, commercial
items with modifications, or nondevelopmental items (see FAR part 10)
that could satisfy the acquisition objectives.
(13) Logistics considerations. (i) Describe the extent of integrated
logistics support planning to date, including references to approved
plans.
(ii) Discuss the mission profile, reliability, and maintainability
(R&M) program plan, R&M predictions, redundancy, qualified parts lists,
parts and material qualification, R&M requirements imposed on vendors,
failure analysis, corrective action and feedback, and R&M design reviews
and trade-off studies. Also discuss corrosion prevention and mitigation
plans.
(iv) See DoDD 5000.1, Defense Acquisition, and DoD 5000.2-R,
Mandatory Procedures for Major Defense Acquisition Programs (MDAPs) and
Major Automated Information System (MAIS) Acquisition Programs, for
procedures on standardization and on the DoD Parts Control Program. Also
see DoD 4120.24-M, Defense Standardization Program (DSP) Policies and
Procedures.
(S-70) Describe the extent of Computer-Aided Acquisition and
Logistics Support (CALS) implementation (see MIL-HDBK 59, Department of
Defense Computer-Aided Logistics Support (CALS) Program Guide, and MIL-
STD-1840A, Automated Interchange of Technical Information.
(16) Environmental and energy conservation objectives. Discuss
actions taken to ensure either elimination of or authorization to use
class I ozone-depleting chemicals and substances (see 211.271).
(19) Other considerations. (A) National Technology and Industrial
Base. For major defense acquisition programs, address the following
(Pub. L. 102-484, section 4220)--
(1) An analysis of the capabilities of the national technology and
industrial base to develop, produce, maintain, and support such program,
including consideration of the following factors related to foreign
dependency (Pub. L. 102-484, section 4219(h))--
(i) The availability of essential raw materials, special alloys,
composite materials, components, tooling, and production test equipment
for the sustained production of systems fully capable of meeting the
performance objectives established for those systems; the uninterrupted
maintenance and repair of such systems; and the sustained operation of
such systems.
(ii) The identification of items specified in paragraph
(b)(18)(A)(1)(i) of this section that are available only from sources
outside the national technology and industrial base.
(iii) The availability of alternatives for obtaining such items from
within the national technology and industrial base if such items become
unavailable from sources outside the national technology industrial
base; and an analysis of any military vulnerability that could result
from the lack of reasonable alternatives.
(iv) The effects on the national technology and industrial base that
result from foreign acquisition of firms in the United States.
(2) Consideration of requirements for efficient manufacture during
the design and production of the systems to be procured under the
program.
(3) The use of advanced manufacturing technology, processes, and
systems during the research and development phase and the production
phase of the program.
(4) To the maximum extent practicable, the use of contract
solicitations that encourage competing offerors to acquire, for use in
the performance of the contract, modern technology, production
equipment, and production systems (including hardware and software) that
increase the productivity of the offerors and reduce the life-cycle
costs.
(5) Methods to encourage investment by U.S. domestic sources in
advanced manufacturing technology production equipment and processes
through--
(i) Recognition of the contractor's investment in advanced
manufacturing technology production equipment, processes, and
organization of work systems that build on workers' skill and
experience, and work force skill development in the development of the
contract objective; and
[[Page 49]]
(ii) Increased emphasis in source selection on the efficiency of
production.
(6) Expanded use of commercial manufacturing processes rather than
processes specified by DoD.
(7) Elimination of barriers to, and facilitation of, the integrated
manufacture of commercial items and items being produced under DoD
contracts.
(8) Expanded use of commercial items, commercial items with
modifications, or to the extent commercial items are not available,
nondevelopmental items (see FAR part 10).
(B) Industrial preparedness (IP).
(1) Provide the program's IP strategy that assesses the capability
of the U.S. industrial base to achieve identified surge and mobilization
goals. If no IP strategy has been developed, provide supporting
rationale for this position.
(2) If in the IP strategy, the development of a detailed IP plan was
determined to be applicable, include the plan by text or by reference.
If the development of the IP plan was determined not to be applicable,
summarize the details of the analysis forming the basis of this
decision.
(3) If the program involves peacetime and wartime hardware
configurations which are supported by logistics support plans, identify
their impact on the IP plan.
(C) Ensure compliance with DoD Instruction 4715.4, Pollution
Prevention.
(D) Contract administration. Discuss the level of Government
administration anticipated or currently performed and any change
proposed by the contract administration office.
(E) Special considerations for acquisition planning for crisis
situations outside the United States. Ensure that the requirements of
DoD Instruction 3020.37, Continuation of Essential DoD Contractor
Services During Crises, are addressed. Also see the guidance at PGI
207.105(b)(19)(E).
[56 FR 36305, July 31, 1991, as amended at 58 FR 28463, May 13, 1993; 58
FR 32061, June 8, 1993; 60 FR 29497, June 5, 1995; 60 FR 61593, Nov. 30,
1995; 61 FR 50451, Sept. 26, 1996; 64 FR 51075, Sept. 21, 1999; 65 FR
14398, Mar. 16, 2000; 65 FR 63804, Oct. 25, 2000; 67 FR 61516, Oct. 1,
2002; 69 FR 55986, Sept. 17, 2004; 70 FR 23801, May 5, 2005; 70 FR
29642, May 24, 2005]
Sec. 207.106 Additional requirements for major systems.
(b)(1)(A) The contracting officer is prohibited by 10 U.S.C.
2305(d)(4)(A) from requiring offers for development or production of
major systems that would enable the Government to use technical data to
competitively reprocure identical items or components of the system if
the item or component were developed exclusively at private expense,
unless the contracting officer determines that--
(1) The original supplier of the item or component will be unable to
satisfy program schedule or delivery requirements;
(2) Proposals by the original supplier of the item or component to
meet mobilization requirements are insufficient to meet the agency's
mobilization needs; or
(3) The Government is otherwise entitled to unlimited rights in
technical data.
(B) If the contracting officer makes a determination, under
paragraphs (b)(1)(A) (1) and (2) of this section, for a competitive
solicitation, 10 U.S.C. 2305(d)(4)(B) requires that the evaluation of
items developed at private expense be based on an analysis of the total
value, in terms of innovative design, life-cycle costs, and other
pertinent factors, of incorporating such items in the system.
Sec. 207.170 Consolidation of contract requirements.
Sec. 207.170-1 Scope.
This section implements 10 U.S.C. 2382.
[69 FR 55987, Sept. 17, 2004]
Sec. 207.170-2 Definitions.
As used in this section--
Consolidation of contract requirements means the use of a
solicitation to obtain offers for a single contract or a multiple award
contract to satisfy two or more requirements of a department, agency, or
activity for supplies or services that previously have been provided to,
or performed for, that department, agency, or activity under two or more
separate contracts lower in cost than the total cost of the contract for
which the offers are solicited.
[[Page 50]]
Multiple award contract means--
(1) A multiple award schedule issued by the General Services
Administration as described in FAR Subpart 8.4;
(2) A multiple award task order or delivery order contract issued in
accordance with FAR Subpart 16.5; or
(3) Any other indefinite-delivery, indefinite-quantity contract that
an agency enters into with two or more sources for the same line item
under the same solicitation.
[69 FR 55987, Sept. 17, 2004]
Sec. 207.170-3 Policy and procedures.
(a) Agencies shall not consolidate contract requirements with a
total value exceeding $5,000,000 unless the acquisition strategy
includes--
(1) The results of market research;
(2) Identification of any alternative contracting approaches that
would involve a lesser degree of consolidation; and
(3) A determination by the senior procurement executive that the
consolidation is necessary and justified.
(i) Market research may indicate that consolidation of contract
requirements is necessary and justified if the benefits of the
acquisition strategy substantially exceed the benefits of each of the
possible alternative contracting approaches. Benefits include costs and,
regardless of whether quantifiable in dollar amounts--
(A) Quality;
(B) Acquisition cycle;
(C) Terms and conditions; and
(D) Any other benefit.
(ii) Savings in administrative or personnel costs alone do not
constitute a sufficient justification for a consolidation of contract
requirements unless the total amount of the cost savings is expected to
be substantial in relation to the total cost of the procurement.
(b) Include the determination made in accordance with paragraph
(a)(3) of this section in the contract file.
[69 FR 55987, Sept. 17, 2004]
Subpart 207.4_Equipment Lease or Purchase
Sec. 207.401 Acquisition considerations.
If the equipment will be leased for more than 60 days, the requiring
activity must prepare and provide the contracting officer with the
justification supporting the decision to lease or purchase.
Sec. 207.470 Statutory requirements.
(a) Limitation on contracts with terms of 18 months or more. As
required by 10 U.S.C. 2401a, the contracting officer shall not enter
into any contract for any vessel, aircraft, or vehicle, through a lease,
charter, or similar agreement with a term of 18 months or more, or
extend or renew any such contract for a term of 18 months or more,
unless the head of the contracting activity has--
(1) Considered all costs of such a contract (including estimated
termination liability); and
(2) Determined in writing that the contract is in the best interest
of the Government.
(b) Leasing of commercial vehicles and associated equipment. Except
as provided in paragraph (a) of this section, the contracting officer
may use leasing in the acquisition of commercial vehicles and associated
equipment whenever the contracting officer determines that leasing of
such vehicles is practicable and efficient (10 US.C. 2401a).
[61 FR 16879, Apr. 18, 1996, as amended at 61 FR 50451, Sept. 26, 1996]
Sec. 207.471 Funding requirements.
(a) Fund leases in accordance with DoD Financial Management
Regulation (FMR) 7000.14-R, Volume 2A, Chapter 1.
(b) DoD leases are either capital leases or operating leases. The
difference between the two types of leases is described in FMR 7000.14-
R, Volume 4, Chapter 7, Section 070207.
(c) Capital leases are essentially installment purchases of
property. Use procurement funds for capital leases.
[64 FR 31732, June 14, 1999, as amended at 66 FR 55121, Nov. 1, 2001]
Subpart 207.5_Inherently Governmental Functions
Source: 70 FR 14573, Mar. 23, 2005, unless otherwise noted.
[[Page 51]]
Sec. 207.500 Scope of subpart.
This subpart also implements 10 U.S.C. 2383.
Sec. 207.503 Policy.
(S-70) Contracts for acquisition functions.
(1) In accordance with 10 U.S.C. 2383, the head of an agency may
enter into a contract for performance of the acquisition functions
closely associated with inherently governmental functions that are
listed at FAR 7.503(d) only if--
(i) The contracting officer determines that appropriate military or
civilian DoD personnel--
(A) Cannot reasonably be made available to perform the functions;
(B) Will supervise contractor performance of the contract; and
(C) Will perform all inherently governmental functions associated
with the functions to be performed under the contract; and
(ii) The contracting officer ensures that the agency addresses any
potential organizational conflict of interest of the contractor in the
performance of the functions under the contract (see FAR Subpart 9.5).
(2) See related information at PGI 207.503(S-70).
Subpart 207.70_Buy-to-Budget_Additional Quantities of End Items
Source: 68 FR 43331, July 22, 2003, unless otherwise noted.
Sec. 207.7001 Definition.
End item, as used in this subpart, means a production product
assembled, completed, and ready for issue or deployment.
Sec. 207.7002 Authority to acquire additional quantities of end items.
10 U.S.C. 2308 authorizes DoD to use funds available for the
acquisition of an end item to acquire a higher quantity of the end item
than the quantity specified in a law providing for the funding of that
acquisition, if the head of an agency determines that--
(a) The agency has an established requirement for the end item that
is expected to remain substantially unchanged throughout the period of
the acquisition;
(b) It is possible to acquire the higher quantity of the end item
without additional funding because of production efficiencies or other
cost reductions;
(c) The amount of funds used for the acquisition of the higher
quantity of the end item will not exceed the amount provided under that
law for the acquisition of the end item; and
(d) The amount provided under that law for the acquisition of the
end item is sufficient to ensure that each unit of the end item acquired
within the higher quantity is fully funded as a complete end item.
Sec. 207.7003 Limitation.
For noncompetitive acquisitions, the acquisition of additional
quantities is limited to not more than 10 percent of the quantity
approved in the justification and approval prepared in accordance with
FAR part 6 for the acquisition of the end item.
PART 208_REQUIRED SOURCES OF SUPPLIES AND SERVICES--Table of Contents
Sec.
208.002 Priorities for use of Government supply sources.
208.003 Use of other Government supply sources.
Subpart 208.4_Federal Supply Schedules
208.404 Using schedules.
208.404-1 Mandatory use.
208.404-2 Optional use.
208.404-70 Additional ordering procedures for services.
208.405 Ordering office responsibilities.
208.405-2 Order placement.
Subpart 208.7_Acquisition from the Blind and Other Severely Handicapped
208.705 Procedures.
Subpart 208.70_Coordinated Acquisition
208.7000 Scope of subpart.
208.7001 Definitions.
208.7002 Assignment authority.
208.7002-1 Acquiring department responsibilities.
208.7002-2 Requiring department responsibilities.
208.7003 Applicability.
208.7003-1 Assignments under integrated materiel management (IMM).
[[Page 52]]
208.7003-2 Assignments under coordinated acquisition.
208.7004 Procedures.
208.7004-1 Purchase authorization from requiring department.
208.7004-2 Acceptance by acquiring department.
208.7004-3 Use of advance MIPRs.
208.7004-4 Cutoff dates for submission of Category II MIPRs.
208.7004-5 Notification of inability to obligate on Category II MIPRs.
208.7004-6 Cancellation of requirements.
208.7004-7 Termination for default.
208.7004-8 Transportation funding.
208.7004-9 Status reporting.
208.7004-10 Administrative costs.
208.7005 MIPRs.
208.7006 Coordinated acquisition assignments.
Subpart 208.71_Acquisition for National Aeronautics and Space
Administration (NASA)
208.7100 Authorization.
208.7101 Policy.
208.7102 Procedures.
208.7103 Purchase request and acceptance.
208.7104 Changes in estimated total prices.
208.7105 Payments.
Subpart 208.72_Industrial Preparedness Production Planning
208.7201 Definitions.
208.7202 General.
208.7203 Authority.
208.7204 Procedures.
Subpart 208.73_Use of Government-Owned Precious Metals
208.7301 Definitions.
208.7302 Policy.
208.7303 Procedures.
208.7304 Refined precious metals.
208.7305 Contract clause.
Subpart 208.74_Enterprise Software Agreements
208.7400 Scope of subpart.
208.7401 Definitions.
208.7402 General.
208.7403 Acquisition procedures.
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36306, July 31, 1991, unless otherwise noted.
Sec. 208.002 Priorities for use of Government supply sources.
(a)(1)(v) See Subpart 208.70, Coordinated Acquisition, and Subpart
208.74, Enterprise Software Agreements.
(2)(iii) Information on General Services Administration (GSA)
schedules for maintenance, repair, and rehabilitation of personal
property is in the GSA supply catalog. The types of personal property
for which GSA, Federal Supply Service has schedule contracts for
maintenance, repair, and/or rehabilitation are--
(1) Furniture (office, household, quarters, institutional, and
hospital type);
(2) Typewriters (manual, electric, and electronic);
(3) Repair and maintenance of Government owned vehicles; and
(4) Tire retreading and repair (except aircraft).
[56 FR 36306, July 31, 1991, as amended at 67 FR 65511, Oct. 25, 2002.
Redesignated at 67 FR 77936, Dec. 20, 2002]
Sec. 208.003 Use of other Government supply sources.
(d) Detailed information on strategic and critical materials in
excess of national stockpile requirements (e.g., metals, ores,
chemicals) is available from the Defense National Stockpile Center, 8725
John J. Kingman Road, Suite 4616, Fort Belvoir, VA 22060-6223.
(e) Acquire helium (Pub. L. 86-777)--
(i) In bulk from--
(A) The Department of Interior (Bureau of Mines); or
(B) Eligible private helium distributors. A list of eligible private
helium distributors is maintained by the Bureau of Mines, Helium Field
Operations, 1100 South Fillmore Street, Amarillo, TX 79101.
(ii) In cylinders or trailers, from--
(A) The Department of Interior (Bureau of Mines); or
(B) Through GSA Federal Supply Schedule contracts.
[56 FR 36306, July 31, 1991, as amended at 62 FR 34121, June 24, 1997.
Redesignated and amended at 67 FR 77936, Dec. 20, 2002]
Subpart 208.4_Federal Supply Schedules
Sec. 208.404 Using schedules.
(a)(i) Departments and agencies shall comply with the review and
approval requirements established in accordance with Subpart 217.78 when
placing orders for supplies or services in amounts
[[Page 53]]
exceeding the simplified acquisition threshold.
(ii) When a schedule lists both foreign and domestic items that will
meet the needs of the requiring activity, the ordering office must apply
the procedures of part 225 and FAR part 25, Foreign Acquisition. When
purchase of an item of foreign origin is specifically required, the
requiring activity must furnish the ordering office sufficient
information to permit the determinations required by part 225 and FAR
part 25 to be made.
(b) Ordering procedures for optional use schedules--
(2) Orders exceeding the micro-purchase threshold but not exceeding
the maximum order threshold. The procedures at FAR 8.404(b)(2),
regarding review of catalogs or pricelists of at least three schedule
contactors, do not apply to orders for services exceeding $100,000.
Instead, use the procedures at 208.404-70.
(3) Orders exceeding the maximum order threshold.
(i) For orders for services exceeding $100,000, use the procedures
at 208.404-70 in addition to the procedures at FAR 8.404(b)(3)(i).
(7) Documentation. For orders for services exceeding $100,000, use
the procedures at 208.404-70 in addition to the procedures at FAR
8.404(b)(7).
(S-70) See related information at PGI 208.404.
[56 FR 36306, July 31, 1991, as amended at 67 FR 65508, Oct. 25, 2002;
69 FR 63327, Nov. 1, 2004; 70 FR 29642, May 24, 2005]
Sec. 208.404-1 Mandatory use.
The DoD will not be a mandatory user of any schedule unless
individual DoD activities elect to provide annual requirements estimates
to GSA and become mandatory users. Examples of areas where this approach
may be applied are:
(1) Group 68--gases and chemicals;
(2) Group 26--pneumatic tires and inner tubes;
(3) Maintenance, repair, and/or rehabilitation of personal property;
and
(4) ``Just-in-time'' arrangements for delivery of material directly
from vendors to users.
Sec. 208.404-2 Optional use.
Make maximum use of the schedules. Other procedures may be used if
further competition is judged to be in the best interest of the
Government in terms of quality, responsiveness, or cost.
Sec. 208.404-70 Additional ordering procedures for services.
(a) This subsection--
(1) Implements Section 803 of the National Defense Authorization Act
for Fiscal Year 2002 (Pub. L. 107-107); and
(2) Also applies to orders placed by non-DoD agencies on behalf of
DoD.
(b) Each order for services exceeding $100,000 shall be placed on a
competitive basis in accordance with paragraph (c) of this subsection,
unless the contracting officer waives this requirement on the basis of a
written determination that--
(1) One of the circumstances described at FAR 16.505(b)(2)(i)
through (iii) applies to the order; or
(2) A statute expressly authorizes or requires that the purchase be
made from a specified source.
(c) An order for services exceeding $100,000 is placed on a
competitive basis only if the contracting officer provides a fair notice
of the intent to make the purchase, including a description of the work
the contractor shall perform and the basis upon which the contracting
officer will make the selection, to--
(1) As many schedule contractors as practicable, consistent with
market research appropriate to the circumstances, to reasonably ensure
that offers will be received from at least three contractors that can
fulfill the work requirements, and the contracting officer--
(i)(A) Receives offers from at least three contractors that can
fulfill the work requirements; or
(B) Determines in writing that no additional contractors that can
fulfill the work requirements could be identified despite reasonable
efforts to do so (documentation should clearly explain efforts made to
obtain offers from at least three contractors); and
(ii) Ensures all offers received are fairly considered; or
(2) All contractors offering the required services under the
applicable
[[Page 54]]
multiple award schedule, and affords all contractors responding to the
notice a fair opportunity to submit an offer and have that offer fairly
considered. Posting of a request for quotations on the General Services
Administration's electronic quote system, ``e-Buy'' (http://
www.gsaAdvantage.gov), is one medium for providing fair notice to all
contractors as required by this paragraph (c).
(d) Single and multiple blanket purchase agreements (BPAs) may be
established against Federal Supply Schedules (see FAR 8.404(b)(4)) if
the contracting officer--
(1) Follows the procedures in paragraphs (b) and (c) of this
subsection;
(2)(i) For a single BPA, defines the individual tasks to be
performed; or
(ii) For multiple BPAs, forwards the statement of work and the
selection criteria to all multiple BPA holders before placing orders;
and
(3) Reviews established BPAs no less than annually to determine
whether the BPA still represents the best value.
(e) Orders placed against Federal Supply Schedules may be credited
toward the ordering agency's small business goals (see FAR 8.404(b)(6)).
[67 FR 65508, Oct. 25, 2002]
Sec. 208.405 Ordering office responsibilities.
Sec. 208.405-2 Order placement.
(1) When ordering from schedules, ordering offices--
(i) May use DD Form 1155, Order for Supplies or Services, to place
orders for--
(A) Commercial items at or below the simplified acquisition
threshold; and
(B) Other than commercial items at any dollar value (see 213.307);
(ii) Shall use SF 1449, Solicitation/Contract/Order for Commercial
Items, to place orders for commercial items exceeding the simplified
acquisition threshold (see FAR 12.204); and
(iii) May use SF 1449 to place orders for other than commercial
items at any dollar value.
(2) Schedule orders may be placed orally if--
(i) The contractor agrees to furnish a delivery ticket for each
shipment under the order (in the number of copies required by the
ordering office). The ticket must include the--
(A) Contract number;
(B) Order number under the contract;
(C) Date of order;
(D) Name and title of person placing the order;
(E) Itemized listing of supplies or services furnished; and
(F) Date of delivery or shipment; and
(ii) Invoicing procedures are agreed upon. Optional methods of
submitting invoices for payment are permitted, such as--
(A) An individual invoice with a receipted copy of the delivery
ticket;
(B) A summarized monthly invoice covering all oral orders made
during the month, with receipted copies of the delivery tickets (this
option is preferred if there are many oral orders); or
(C) A contracting officer statement that the Government has received
the supplies.
(3) For purchases where cash payment is an advantage, the use of
imprest funds in accordance with 213.305 is authorized when--
(i) The order does not exceed the threshold at FAR 13.305-3(a); and
(ii) The contractor agrees to the procedure.
(4) If permitted under the schedule contract, use of the
Governmentwide commercial purchase card--
(i) Is mandatory for placement of orders valued at or below the
micro-purchase threshold; and
(ii) Is optional for placement of orders valued above the micro-
purchase threshold.
[64 FR 2596, Jan. 15, 1999, as amended at 65 FR 46625, July 31, 2000]
Subpart 208.7_Acquisition From the Blind and Other Severely Handicapped
Sec. 208.705 Procedures.
Ordering offices may use DD Form 1155, Order for Supplies or
Services, to place orders with central nonprofit agencies or workshops.
[[Page 55]]
Subpart 208.70_Coordinated Acquisition
Sec. 208.7000 Scope of subpart.
This subpart prescribes policy and procedures for acquisition of
items for which contracting responsibility is assigned to one or more of
the departments/agencies or the General Services Administration.
Contracting responsibility is assigned through--
(a) The Coordinated Acquisition Program (commodity assignments are
listed in appendix B); or
(b) The Integrated Materiel Management Program (assignments are in
DoD 4140.26-M, Defense Integrated Materiel Management Manual for
Consumable Items).
[56 FR 36306, July 31, 1991, as amended at 67 FR 77936, Dec. 20, 2002]
Sec. 208.7001 Definitions.
For purposes of this subpart--
Acquiring department means the department, agency, or General
Services Administration which has contracting responsibility under the
Coordinated Acquisition Program.
Integrated materiel management means assignment of acquisition
management responsibility to one department, agency, or the General
Services Administration for all of DoD's requirements for the assigned
item. Acquisition management normally includes computing requirements,
funding, budgeting, storing, issuing, cataloging, standardizing, and
contracting functions.
Requiring department means the department or agency which has the
requirement for an item.
Sec. 208.7002 Assignment authority.
(a) Under the DoD Coordinated Acquisition Program, contracting
responsibility for certain commodities is assigned to a single
department, agency, or the General Services Administration (GSA).
Commodity assignments are made--
(1) To the departments and agencies, by the Deputy Under Secretary
of Defense (Logistics);
(2) To GSA, through agreement with GSA, by the Deputy Under
Secretary of Defense (Logistics);
(3) Outside the contiguous United States, by the Unified Commanders;
and
(4) For acquisitions to be made in the contiguous United States for
commodities not assigned under paragraphs (a)(1), (2), or (3) of this
section, by agreement of agency heads (10 U.S.C. 2311).
(i) Agreement may be on either a one-time or a continuing basis. The
submission of a military interdepartmental purchase request (MIPR) by a
requiring activity and its acceptance by the contracting activity of
another department, even though based on an oral communication,
constitutes a one-time agreement.
(ii) Consider repetitive delegated acquisition responsibilities for
coordinated acquisition assignment. If not considered suitable for
coordinated acquisition assignment, formalize continuing agreements and
distribute them to all activities concerned.
(b) Under the Integrated Materiel Management Program, assignments
are made by the Deputy Under Secretary of Defense (Logistics)--
(1) To the departments and agencies; and
(2) To GSA, through agreement with GSA.
[56 FR 36306, July 31, 1991, as amended at 64 FR 51075, Sept. 21, 1999;
70 FR 35544, June 21, 2005]
Sec. 208.7002-1 Acquiring department responsibilities.
The acquiring department generally is responsible under coordinated
acquisition for--
(a) Operational aspects of acquisition planning (Phasing the
submission of requirements to contracting, consolidating or dividing
requirements, analyzing the market, and determining patterns for the
phased placement of orders to avoid unnecessary production fluctuations
and meet the needs of requiring departments at the lowest price);
(b) Purchasing;
(c) Performing or assigning contract administration, including
follow up and expediting of inspection and transportation; and
(d) Obtaining licenses under patents and settling patent
infringement
[[Page 56]]
claims arising out of the acquisition. (Acquiring departments must
obtain approval from the department whose funds are to be charged for
obtaining licenses or settling claims.)
Sec. 208.7002-2 Requiring department responsibilities.
The requiring department is responsible for--
(a) Ensuring compliance with the order of priority in FAR 8.001 for
use of Government supply sources before submitting a requirement to the
acquiring department for contracting action.
(b) Providing the acquiring department--
(1) The complete and certified documentation required by FAR 6.303-
2(b). A requiring department official, equivalent to the appropriate
level in FAR 6.304, must approve the documentation before submission of
the military interdepartmental purchase request (MIPR) to the acquiring
department;
(2) Any additional supporting data which the acquiring department
contracting officer requests (e.g., the results of any market survey or
why none was conducted, and actions the requiring department will take
to overcome barriers to competition in the future);
(3) The executed determination and findings required by FAR 6.302-
7(c)(1);
(4) When a requiring department requests an acquiring department to
contract for supplies or services using full and open competition after
exclusion of sources, all data required by FAR 6.202(b)(2);
(5) When the requiring department specifies a foreign end product,
any determinations required by part 225 or FAR part 25;
(6) A complete definition of the requirements, including a list (or
copies) of specifications, drawings, and other data required for the
acquisition. The requiring department need not furnish Federal,
military, departmental, or other specifications or drawings or data
which are available to the acquiring department;
(7) Justification required by FAR 17.205(a) for any option
quantities requested;
(8) A statement as to whether used or reconditioned material, former
Government surplus property, or residual inventory will be acceptable,
and if so--
(i) A list of any supplies that need not be new; and
(ii) The basis for determining the acceptability of such supplies
(see FAR 11.302(b));
(9) A statement as to whether the acquiring department may exceed
the total MIPR estimate, and if so, by what amount; and
(10) Unless otherwise agreed between the departments, an original
and six copies of each MIPR and its attachments (except specifications,
drawings, and other data).
[56 FR 36306, July 31, 1991, as amended at 65 FR 52951, Aug. 31, 2000]
Sec. 208.7003 Applicability.
Sec. 208.7003-1 Assignments under integrated materiel management (IMM).
(a) All items assigned for IMM must be acquired from the IMM manager
except--
(1) Items purchased under circumstances of unusual and compelling
urgency as defined in FAR 6.302-2. After such a purchase is made, the
requiring activity must send one copy of the contract and a statement of
the emergency to the IMM manager;
(2) Items for which the IMM manager assigns a supply system code for
local purchase or otherwise grants authority to purchase locally; or
(3) When purchase by the requiring activity is in the best interest
of the Government in terms of the combination of quality, timeliness,
and cost that best meets the requirement. This exception does not apply
to items--
(i) Critical to the safe operation of a weapon system;
(ii) With special security characteristics; or
(iii) Which are dangerous (e.g., explosives, munitions).
(b) When an item assigned for IMM is to be acquired by the requiring
activity under paragraph (a)(3) of this subsection, the contracting
officer must--
(1) Document the contract file with a statement of the specific
advantage of local purchase for an acquisition exceeding the micro-
purchase threshold in FAR part 2; and
[[Page 57]]
(2) Ensure that a waiver is obtained from the IMM manager before
initiating an acquisition exceeding the simplified acquisition threshold
in FAR part 2, if the IMM assignment is to the General Services
Administration (GSA), the Defense Logistics Agency (DLA), or the Army
Materiel Command (AMC). Submit requests for waiver to--
(i) For GSA:
Commissioner (F), Federal Supply Service, Washington, DC 20406
(ii) For DLA:
Defense Supply Center, Columbus, ATTN: DSCC-BDL, P.O. Box 3990,
Columbus, OH 43216-5000
Defense Energy Support Center, ATTN: DESC-FI, 8725 John J. Kingman Road,
Fort Belvoir, VA 22060-6222
Defense Supply Center, Richmond, ATTN: DSCR-RZO, 8000 Jefferson Davis
Highway, Richmond, VA 23297-5000
Defense Supply Center, Philadelphia, ATTN: DSCP-ILSI (for General and
Industrial), DSCP-OCS (for Medical, Clothing, and Textiles), 700 Robbins
Avenue, Bldg. 4, Philadelphia, PA 19111-5096
In addition, forward a copy of each request to:
Defense Logistics Support Command, ATTN: DLSC-LS, 8725 John J. Kingman
Road, Fort Belvoir, VA 22060-6221.
(iii) For AMC:
Commander, U.S. Army Materiel Command, ATTN: AMCLG-S, 5001 Eisenhower
Avenue, Alexandria, VA 22333-0001
[60 FR 61593, Nov. 30, 1995, as amended at 64 FR 51075, Sept. 21, 1999;
64 FR 61031, Nov. 9, 1999]
Sec. 208.7003-2 Assignments under coordinated acquisition.
Requiring departments must submit to the acquiring department all
contracting requirements for items assigned for coordinated acquisition,
except--
(a) Items obtained through the sources in FAR 8.001(a)(1) (i)
through (vii);
(b) Items obtained under 208.7003-1(a);
(c) Requirements not in excess of the simplified acquisition
threshold in FAR part 2, when contracting by the requiring department is
in the best interest of the Government;
(d) In an emergency. When an emergency purchase is made, the
requiring department must send one copy of the contract and a statement
of the emergency to the contracting activity of the acquiring
department;
(e) Requirements for which the acquiring department's contracting
activity delegates contracting authority to the requiring department;
(f) Items in a research and development stage (as described in FAR
part 35). Under this exception, the military departments may contract
for research and development requirements, including quantities for
testing purposes and items undergoing in-service evaluation (not yet in
actual production, but beyond prototype). Generally, this exception
applies only when research and development funds are used.
(g) Items peculiar to nuclear ordnance material where design
characteristics or test-inspection requirements are controlled by the
Department of Energy (DoE) or by DoD to ensure reliability of nuclear
weapons.
(1) This exception applies to all items designed for and peculiar to
nuclear ordnance regardless of agency control, or to any item which
requires test or inspection conducted or controlled by DoE or DoD.
(2) This exception does not cover items used for both nuclear
ordnance and other purposes if the items are not subject to the special
testing procedures.
(h) Items to be acquired under FAR 6.302-6 (national security
requires limitation of sources);
(i) Items to be acquired under FAR 6.302-1 (supplies available only
from the original source for follow-on contract);
(j) Items directly related to a major system and which are design
controlled by and acquired from either the system manufacturer or a
manufacturer of a major subsystem;
(k) Items subject to rapid design changes, or to continuous redesign
or modification during the production and/or operational use phases,
which require continual contact between industry and the requiring
department to ensure that the item meets the requirements:
(1) This exception permits the requiring department to contract for
items of highly unstable design. For use of this
[[Page 58]]
exception, it must be clearly impractical, both technically and
contractually, to refer the acquisition to the acquiring department.
Anticipation that contracting by negotiation will be appropriate, or
that a number of design changes may occur during contract performance is
not in itself sufficient reason for using this exception.
(2) This exception also applies to items requiring compatibility
testing, provided such testing requires continual contact between
industry and the requiring department;
(l) Containers acquired only with items for which they are designed;
(m) One-time buy of a noncataloged item.
(1) This exception permits the requiring departments to contract for
a nonrecurring requirement for a noncataloged item. This exception could
cover a part or component for a prototype which may be stock numbered at
a later date.
(2) This exception does not permit acquisitions of recurring
requirements for an item, based solely on the fact that the item is not
stock numbered, nor may it be used to acquire items which have only
slightly different characteristics than previously cataloged items.
[56 FR 36306, July 31, 1991, as amended at 60 FR 61593, Nov. 30, 1995;
64 FR 51075, Sept. 21, 1999]
Sec. 208.7004 Procedures.
Sec. 208.7004-1 Purchase authorization from requiring department.
(a) Requiring departments send their requirements to acquiring
departments on either a DD Form 448, Military Interdepartmental Purchase
Request (MIPR), or a DD Form 416, Requisition for Coal, Coke or
Briquettes. A MIPR or a DD Form 416 is the acquiring department's
authority to acquire the supplies or services on behalf of the requiring
department.
(b) The acquiring department is authorized to create obligations
against the funds cited in a MIPR without further referral to the
requiring department. The acquiring department has no responsibility to
determine the validity of a stated requirement in an approved MIPR, but
it should bring apparent errors in the requirement to the attention of
the requiring department.
(c) Changes that affect the contents of the MIPR must be processed
as a MIPR amendment regardless of the status of the MIPR. The requiring
department may initially transmit changes electronically or by some
other expedited means, but must confirm changes by a MIPR amendment.
(d) The requiring department must submit requirements for additional
line items of supplies or services not provided for in the original MIPR
as a new MIPR. The requiring department may use a MIPR amendment for
increased quantities only if--
(1) The original MIPR requirements have not been released for
solicitation; and
(2) The acquiring department agrees.
Sec. 208.7004-2 Acceptance by acquiring department.
(a) Acquiring departments formally accept a MIPR by DD Form 448-2,
Acceptance of MIPR, as soon as practicable, but no later than 30 days
after receipt of the MIPR. If the 30 day time limit cannot be met, the
acquiring department must inform the requiring department of the reason
for the delay, and the anticipated date the MIPR will be accepted. The
acquiring department must accept MIPRs in writing before expiration of
the funds.
(b) The acquiring department in accepting a MIPR will determine
whether to use Category I (reimbursable funds citation) or Category II
(direct funds citation) methods of funding.
(1) Category I method of funding is used under the following
circumstances and results in citing the funds of the acquiring
department in the contract--
(i) Delivery is from existing inventories of the acquiring
department;
(ii) Delivery is by diversion from existing contracts of the
acquiring department;
(iii) Production or assembly is through Government work orders in
Government-owned plants;
(iv) Production quantities are allocated among users from one or
more contracts, and the identification of specific quantities of the end
item to individual contracts is not feasible at the time of MIPR
acceptance;
[[Page 59]]
(v) Acquisition of the end items involves separate acquisition of
components to be assembled by the acquiring department;
(vi) Payments will be made without reference to deliveries of end
items (e.g., cost-reimbursement type contracts and fixed price contracts
with progress payment clauses); or
(vii) Category II method of funding is not feasible and economical.
(2) Category II method of funding is used in circumstances other
than those in paragraph (b)(1) of this subsection. Category II funding
results in citation of the requiring department's funds and MIPR number
in the resultant contract.
(c) When the acquiring departments accepts a MIPR for Category I
funding--
(1) The DD Form 448-2, Acceptance of MIPR, is the authority for the
requiring department to record the obligation of funds;
(2) The acquiring department will annotate the DD Form 448-2 if
contingencies, price revisions, or variations in quantities are
anticipated. The acquiring department will periodically advise the
requiring department, prior to submission of billings, of any changes in
the acceptance figure so that the requiring department may issue an
amendment to the MIPR, and the recorded obligation may be adjusted to
reflect the current price;
(3) If the acquiring department does not qualify the acceptance of a
MIPR for anticipated contingencies, the price on the acceptance will be
final and will be billed at time of delivery;
(4) Upon receipt of the final billing (SF 1080, Voucher for
Transferring Funds), the requiring department may adjust the fiscal
records accordingly without authorization from or notice to the
acquiring department.
(d) When the MIPR is accepted for Category II funding, a conformed
copy of the contract (see 204.802(1)(ii)) is the authority to record the
obligation. When all awards have been placed to satisfy the total MIPR
requirement, any unused funds remaining on the MIPR become excess to the
acquiring department. The acquiring department will immediately notify
the requiring department of the excess funds by submitting an Acceptance
of MIPR (DD Form 448-2). This amendment is authorization for the
requiring department to withdraw the funds. The acquiring department is
prohibited from further use of such excess funds.
(e) When the acquiring department requires additional funds to
complete the contracting action for the requiring department, the
request for additional funds must identify the exact items involved, and
the reason why additional funds are required. The requiring department
shall act quickly to--
(1) Provide the funds by an amendment of the MIPR; or
(2) Reduce the requirements.
(f) The accepting activity of the acquiring department shall remain
responsible for the MIPR even though that activity may split the MIPR
into segments for action by other contracting activities.
Sec. 208.7004-3 Use of advance MIPRs.
(a) An advance MIPR is an unfunded MIPR provided to the acquiring
department in advance of the funded MIPR so that initial steps in
planning the contract action can begin at an earlier date.
(b) In order to use an advance MIPR, the acquiring department and
the requiring department must agree that its use will be beneficial. The
departments may execute a blanket agreement to use advance MIPRs.
(c) The requiring department shall not release an advance MIPR to
the acquiring department without obtaining proper internal approval of
the requirement.
(d) When advance MIPRs are used, mark ``ADVANCE MIPR'' prominently
on the DD Form 448.
(e) For urgent requirements, the advance MIPR may be transmitted
electronically.
(f) On the basis of an advance MIPR, the acquiring department may
take the initial steps toward awarding a contract, such as obtaining
internal coordination and preparing an acquisition plan. Acquiring
departments may determine the extent of these initial actions but shall
not award contracts on the basis of advance MIPRs.
[[Page 60]]
Sec. 208.7004-4 Cutoff dates for submission of Category II MIPRs.
(a) Unless otherwise agreed between the departments, May 31 is the
cutoff date for the receipt of MIPRs citing expiring appropriations
which must be obligated by September 30 of that fiscal year. If
circumstances arise which require the submission of MIPRs citing
expiring appropriations after the cutoff date, the requiring department
will communicate with the acquiring department before submission to find
out whether the acquiring department can execute a contract or otherwise
obligate the funds by the end of the fiscal year. Acquiring departments
will make every effort to obligate funds for all such MIPRs accepted
after the cutoff date. However, acceptance of a late MIPR does not
constitute assurance by the acquiring department that all such funds
will be obligated.
(b) Nothing in these instructions is intended to restrict the
processing of MIPRs when the acquiring department is capable of
executing contracts or otherwise obligating funds before the end of the
fiscal year.
(c) The May 31 cutoff date does not apply to MIPRs citing continuing
appropriations.
Sec. 208.7004-5 Notification of inability to obligate on Category II
MIPRs.
On August 1, the acquiring department will advise the requiring
department of any Category II MIPRs on hand citing expiring
appropriations they will be unable to obligate prior to the fund
expiration date. If an unforeseen situation develops after August 1
which will prevent execution of a contract, the acquiring department
will notify the requiring department as quickly as possible and return
the MIPR. The letter of transmittal returning the MIPR will authorize
purchase by the requiring department and state the reason that the
acquisition could not be accomplished.
Sec. 208.7004-6 Cancellation of requirements.
(a) Category I MIPRs. The requiring department will notify the
acquiring department by electronic or other immediate means when
cancelling all or part of the supplies or services requested in the
MIPR. Within 30 days, the acquiring department will notify the requiring
department of the quantity of items available for termination and the
amount of funds in excess of the estimated settlement costs. Upon
receipt of this information, the requiring department will issue a MIPR
amendment to reduce the quantities and funds accordingly.
(b) Category II MIPRs. The requiring department will notify the
acquiring department electronically or by other immediate means when
cancelling all or any part of the supplies or services requested in the
MIPR.
(1) If the acquiring department has not entered into a contract for
the supplies or services to be cancelled, the acquiring department will
immediately notify the requiring department. Upon receipt of such
notification, the requiring department shall initiate a MIPR amendment
to revoke the estimated amount shown on the original MIPR for the
cancelled items.
(2) If the items to be cancelled have already been placed under
contract--
(i) As soon as practicable, but in no event more than 45 days after
receipt of the cancellation notice from the requiring department, the
contracting officer shall issue a termination data letter to the
requiring department (original and four copies) containing, as a
minimum, the information in Table 8-1, Termination Data Letter.
(ii) The termination contracting officer (TCO) will review the
proceedings at least every 60 days to reassess the Government's probable
obligation. If any additional funds are excess to the probable
settlement requirements, or if it appears that previous release of
excess funds will result in a shortage of the amount which will be
required for settlement, the TCO will promptly notify the contracting
office which will amend the termination data letter. The requiring
department will process a MIPR amendment to reflect the reinstatement of
funds within 30 days after receiving the amended termination data
letter.
(iii) Upon receipt of a copy of the termination settlement
agreement, the requiring department will prepare a MIPR amendment, if
required, to remove any remaining excess funds.
[[Page 61]]
Table 8-1, Termination Data Letter
SUBJECT: Termination Data Re:
Contract No. ------------
Termination No. ------------
Contract ------------
(a) As termination action is now in progress on the above contract, the
following information is submitted:
(1) Brief Description of items terminated.
(2) You are notified that the sum of $-------- is available for release
under the subject contract. This sum represents the difference between
$--------, the value of items terminated under the contract, and $------
-- estimated to be required for settlement of the terminated contract.
The estimated amount available for release is allocated by the
appropriations cited on the contract as follows:
MIPR NO. -------- ACCOUNTING CLASSIFICATION -------- AMOUNT --------
Total available for release at this time $--------
(b) Request you forward an amendment to MIPR -------- on DD Form 448-2
to reflect the reduced quantity and amount of funds available for
release.
(c) Periodic reviews (not less than 60 days) will be made as
termination proceedings progress to redetermine the Government's
probable obligation.
----------------------------------------
Contracting Officer
------------------------------------------------------------------------
Sec. 208.7004-7 Termination for default.
(a) When the acquiring department terminates a contract for default,
they will ask the requiring department if the supplies or services to be
terminated are still required so that repurchase action can be started.
(b) The requiring department will not deobligate funds on a contract
terminated for default until receipt of a settlement modification or
other written evidence from the acquiring department authorizing release
of funds.
(c) On the repurchase action, the acquiring department will not
exceed the unliquidated funds on the defaulted contract without
receiving additional funds from the requiring department.
Sec. 208.7004-8 Transportation funding.
The requiring department will advise the acquiring department or the
transportation officer in the contract administration office of the fund
account to be charged for transportation costs. The requiring department
may cite the fund account on each MIPR or provide the funding cite to
the transportation officer at the beginning of each fiscal year for use
on Government bills of lading. When issuing a Government bill of lading,
show the requiring department as the department to be billed and cite
the appropriate fund account.
Sec. 208.7004-9 Status reporting.
(a) The acquiring department will maintain a system of MIPR follow
up to inform the requiring department of the current status of its
requests. In addition, the contract administration office will maintain
a system of follow up in order to advise the acquiring department on
contract performance.
(b) If requested by the requiring department, the acquiring
department will furnish the requiring department a copy of the
solicitation when the MIPR is satisfied through Category II funding.
(c) Any reimbursement billings, shipping document, contractual
documents, project orders, or related documentation furnished to the
requiring department will identify the requiring department's MIPR
number, quantities of items, and funding information.
Sec. 208.7004-10 Administrative costs.
The acquiring department bears the administrative costs of acquiring
supplies for the requiring department. However, when an acquisition
responsibility is transferred to another department, funds appropriated
or to be appropriated for administrative costs will transfer to the
successor acquiring department. The new acquiring department must assume
budget cognizance as soon as possible.
Sec. 208.7005 MIPRs.
Instructions on preparation and use of DD Form 448, Military
Interdepartmental Purchase Request, and DD Form 448-2, Acceptance of
MIPR, are in 253.208.
Sec. 208.7006 Coordinated acquisition assignments.
See appendix B for coordinated acquisition assignments.
[[Page 62]]
Subpart 208.71_Acquisition for National Aeronautics and Space
Administration (NASA)
Sec. 208.7100 Authorization.
NASA is authorized by Public Law 85-568 to use the acquisition
services, personnel, equipment, and facilities of DoD departments and
agencies with their consent, with or without reimbursement, and on a
similar basis to cooperate with the departments/agencies in the use of
acquisition services, equipment, and facilities.
Sec. 208.7101 Policy.
Departments and agencies will--
(a) Cooperate fully with NASA in making acquisition services,
equipment, personnel, and facilities available on the basis of mutual
agreement.
(b) Not claim reimbursement for administrative costs incident to
acquisitions for NASA, unless agreed otherwise prior to the time
services are performed.
Sec. 208.7102 Procedures.
(a) When contracting or performing field service functions for NASA,
the departments and agencies will use their own methods, except when
otherwise required by the terms of the agreement.
(b) Departments and agencies normally will use their own funds when
contracting for or performing services for NASA and will not cite NASA
funds on any defense obligation or payment document.
Sec. 208.7103 Purchase request and acceptance.
(a) NASA will use NASA Form 523, NASA-Defense Purchase Request, to
request acquisition of supplies or services.
(b) Except as provided in paragraph (d) of this section, departments
and agencies will respond within 30 days to a NASA purchase request by
forwarding DD Form 448-2, Acceptance of MIPR. Forward each DD Form 448-2
in quadruplicate and indicate action status as well as the name and
address of the DoD acquisition activity for future use by the NASA
initiator.
(c) To the extent feasible, all documents related to the NASA action
will reference the NASA-Defense Purchase Request number and the item
number when appropriate.
(d) Departments and agencies are not required to accept NASA-Defense
Purchase Requests for common-use standard stock items which the
supplying department has on hand or on order for prompt delivery at
published prices.
Sec. 208.7104 Changes in estimated total prices.
When a department or agency determines that the estimated total
price (Block 6F, NASA Form 523) for NASA items is not sufficient to
cover the required reimbursement, or is in excess of the amount
required, the department/agency will forward a request for amendment to
the NASA originating office. Indicate in the request a specific dollar
amount, rather than a percentage, and include justification for any
upward adjustment requested. Upon approval of a request, NASA will
forward an amendment of its purchase request to the contracting
activity.
Sec. 208.7105 Payments.
Departments and agencies will submit SF 1080, Voucher for
Transferring Funds, billings to the NASA office designated in Block 9 of
the NASA-Defense Purchase Request, except where agreements provide that
reimbursement is not required. Departments and agencies will support
billings in the same manner as billings between departments and
agencies.
Subpart 208.72_Industrial Preparedness Production Planning
Sec. 208.7201 Definitions.
As used in this subpart--
Industrial base means that part of the total privately-owned and
Government-owned industrial production and maintenance capacity of the
United States and Canada, which will be available during national
emergencies to manufacture and repair items required by the departments.
Industrial preparedness production planning means planning designed
to maintain an adequate industrial base
[[Page 63]]
to support DoD requirements for selected essential military items in a
national emergency.
National emergency means a condition declared by the President or
the Congress which authorizes certain emergency action in the national
interest, including partial or total mobilization of national resources.
Planned item means any item selected for industrial preparedness
planning under the criteria of DoDI 4005.3, Industrial Preparedness
Planning.
Planned producer means an industrial firm which has agreed by either
non-binding memorandum of understanding or binding contract/contract
clause to provide production capacity data, to maintain existing
capacity for a negotiated period of time, and to accept contracts for
planned items upon the request of the Government.
Sec. 208.7202 General.
(a) Under the Industrial Preparedness Production Planning (IPPP)
program, DoD components and industry work together to ensure essential
military items are available during an emergency.
(b) Departments and agencies select weapon systems and items for
planning in accordance with DoDI 4005.3, Industrial Preparedness
Planning. Planning is conducted only with U.S. or Canadian sources.
(c) The use of privately-owned facilities is preferred to minimize
the need for Government investment. Departments and agencies will
include Government-owned production facilities in the industrial base
only when--
(1) Private industry is unable to provide the facilities necessary
to support DoD requirements; or
(2) The facilities are necessary--
(i) For reasons of national security; or
(ii) To ensure a quick response capability to meet fluctuating
demands.
Sec. 208.7203 Authority.
Authority under current contracting procedures to accomplish
industrial planning actions includes--
(a) Leasing of Government-owned property to planned emergency
producers under the authority of the Military Leasing Act of 1947, 10
U.S.C. 2667;
(b) Acquisitions in the interest of national defense under FAR
6.202(a)(2), or in case of a national emergency or to achieve industrial
mobilization under FAR 6.302-3;
(c) Acquisition of items restricted under 225.7005 and Subpart
225.71.
(d) Use of multiyear contracting (FAR subpart 17.1);
(e) Providing Government production and research property to
contractors; and
(f) Use of direct payment for idle facilities or idle capacities
reserved for defense mobilization production (FAR 31.205-17(d)).
[56 FR 36306, July 31, 1991, as amended at 57 FR 42629, Sept. 15, 1992;
62 FR 34121, June 24, 1997; 68 FR 15618, Mar. 31, 2003]
Sec. 208.7204 Procedures.
(a) Except as otherwise provided in FAR or DFARS, solicit planned
producers for all acquisitions of their planned items, when the
acquisition exceeds the simplified acquisition threshold.
(b) The contracting officer may contract for industrial planning
efforts for selected essential military items. These efforts may
include, but are not limited to, the maintenance of Government-owned
industrial facilities (real and personal property) or production data
packages. These planning efforts may be acquired through an individual
service contract or as a line item on a contract for a planned item.
[56 FR 36306, July 31, 1991, as amended at 64 FR 2596, Jan. 15, 1999]
Subpart 208.73_Use of Government-Owned Precious Metals
Sec. 208.7301 Definitions.
As used in this subpart--
Defense Supply Center, Philadelphia (DSCP) means the Defense
Logistics Agency field activity located at 700 Robbins Avenue,
Philadelphia, PA 19111-5096, which is the assigned commodity integrated
material manager for refined precious metals and is responsible for the
storage and issue of such material.
Dual pricing evaluation procedure means a procedure where offerors
submit two prices for precious metals
[[Page 64]]
bearing items--one based on Government-furnished precious metals and one
based on contractor-furnished precious metals. The contracting officer
evaluates the prices to determine which is in the Government's best
interest.
Precious Metals Indicator Code (PMIC) means a single-digit, alpha-
numeric code assigned to national stock numbered items in the Defense
Integrated Data System Total Item Record used to indicate the presence
or absence of precious metals in the item. PMICs and the content value
of corresponding items are listed in DoD 4100.39-M, Federal Logistics
Information System (FLIS) Procedures Manual, Volume 10, Chapter 4, Table
160.
Refined precious metal means recovered silver, gold, platinum,
palladium, iridium, rhodium, or ruthenium, in bullion, granulation or
sponge form, which has been purified to at least .999 percentage of
fineness.
[56 FR 36306, July 31, 1991, as amended at 65 FR 14398, Mar. 16, 2000;
65 FR 52951, Aug. 31, 2000; 65 FR 58607 Sept. 29, 2000]
Sec. 208.7302 Policy.
DoD policy is for maximum participation in the Precious Metals
Recovery Program (PMRP). DoD components shall furnish recovered precious
metals contained in the DSCP inventory to production contractors rather
than use contractor-furnished precious metals whenever the contracting
officer determines it to be in the Government's best interest.
[56 FR 36306, July 31, 1991, as amended at 65 FR 52951, Aug. 31, 2000]
Sec. 208.7303 Procedures.
(a) Item managers and contracting officers will use the PMIC and/or
other relevant data furnished with a purchase request to determine the
applicability of this subpart.
(b) When an offeror advises of a precious metals requirement, the
contracting officer shall use the procedures in chapter 11 of DoD
4160.21-M, Defense Materiel Disposition Manual, to determine
availability of required precious metal assets and current government-
furnished materiel (GFM) unit prices. If the precious metals are
available, the contracting officer shall evaluate offers and award the
contract on the basis of the offer which is in the best interest of the
Government.
(c) When the clause prescribed by 208.7305 is included in a
solicitation, the contracting officer will ensure that section B,
Schedule of Supplies or Services and Prices, is structured to--
(1) Permit insertion of alternate prices for each deliverable
contract line item number that uses precious metals; and
(2) Use dual pricing evaluation procedures.
[56 FR 36306, July 31, 1991, as amended at 65 FR 52952, Aug. 31, 2000;
65 FR 58607, Sept. 29, 2000]
Sec. 208.7304 Refined precious metals.
The following refined precious metals are currently managed by DSCP:
------------------------------------------------------------------------
Precious metal National stock number (NSN)
------------------------------------------------------------------------
Gold...................................... 9660-00-042-7733
Silver.................................... 9660-00-106-9432
Platinum Granules......................... 9660-00-042-7768
Platinum Sponge........................... 9660-00-151-4050
Palladium Granules........................ 9660-00-042-7765
Palladium Sponge.......................... 9660-01-039-0320
Rhodium................................... 9660-01-010-2625
Iridium................................... 9660-00-011-1937
Ruthenium................................. 9660-01-039-0313
------------------------------------------------------------------------
[65 FR 52952, Aug. 31, 2000]
Sec. 208.7305 Contract clause.
(a) Use the clause at 252.208-7000, Intent to Furnish Precious
Metals as Government-Furnished Material, in all solicitations and
contracts except--
(1) When the contracting officer has determined that the required
precious metals are not available from DSCP;
(2) When the contracting officer knows that the items being acquired
do not require precious metals in their manufacture; or
(3) For acquisitions at or below the simplified acquisition
threshold.
(b) To make the determination in paragraph (a)(1) of this section,
the contracting officer shall consult with the end item inventory
manager and comply with the procedures in Chapter 11, DoD 4160.21-M,
Defense Materiel Disposition Manual.
[56 FR 36306, July 31, 1991, as amended at 64 FR 2596, Jan. 15, 1999; 65
FR 14398, Mar. 16, 2000; 65 FR 52952, Aug. 31, 2000]
[[Page 65]]
Subpart 208.74_Enterprise Software Agreements
Source: 67 FR 65511, Oct. 25, 2002, unless otherwise noted.
Sec. 208.7400 Scope of subpart.
This subpart prescribes policy and procedures for acquisition of
commercial software and software maintenance, including software and
software maintenance that is acquired--
(a) As part of a system or system upgrade, where practicable;
(b) Under a service contract;
(c) Under a contract or agreement administered by another agency
(e.g., under an interagency agreement);
(d) Under a Federal Supply Schedule contract or blanket purchase
agreement established in accordance with FAR 8.404(b)(4); or
(e) By a contractor that is authorized to order From a Government
supply source pursuant to FAR 51.101.
Sec. 208.7401 Definitions.
As used in this subpart--
Enterprise software agreement means an agreement or a contract that
is used to acquire designated commercial software or related services
such as software maintenance.
Enterprise Software Initiative means an initiative led by the DoD
Chief Information Officer to develop processes for DoD-wide software
asset management.
Golden Disk means a purchased license or entitlement to distribute
an unlimited or bulk number of copies of software throughout DoD.
Software maintenance means services normally provided by a software
company as standard services at established catalog or market prices,
e.g., the right to receive and use upgraded versions of software,
updates, and revisions.
Software product manager means the Government official who manages
an enterprise software agreement.
Sec. 208.7402 General.
Departments and agencies shall fulfill requirements for commercial
software and related services, such as software maintenance, in
accordance with the DoD Enterprise Software Initiative (ESI) (see Web
site at http://www.don-imit.navy.mil/esi). ESI promotes the use of
enterprise software agreements (ESAs) with contractors that allow DoD to
obtain favorable terms and pricing for commercial software and related
services. ESI does not dictate the products or services to be acquired.
Sec. 208.7403 Acquisition procedures.
(a) After requirements are determined, the requiring official shall
review the information at the ESI website to determine if the required
commercial software or related services are available from DoD inventory
(e.g., Golden Disks and DoD-wide software maintenance agreements). If
the software or services are available, the requiring official shall
fulfill the requirement from the DoD inventory.
(b) If the required commercial software or related services are not
in the DoD inventory, and not on an ESA, the contracting officer or
requiring official may fulfill the requirement by other means. Existing
ESAs are listed on the ESI website.
(c) If the commercial software or related services are on an ESA,
the contracting officer or requiring official shall review the terms and
conditions and prices in accordance with otherwise applicable source
selection requirements.
(d) If an ESA's terms and conditions and prices represent the best
value to the Government, the contracting officer or requiring official
shall fulfill the requirement for software or services through the ESA.
(e) If existing ESAs do not represent the best value to the
Government, the software product manager (SPM) shall be given an
opportunity to provide the same or a better value to the Government
under the ESAs before the contracting officer or requiring official may
continue with alternate acquisition methods.
(1) The contracting officer or requiring official shall notify the
SPM of specific concerns about existing ESA terms and conditions or
prices through the ESI webpage.
(2) The SPM shall consider adjusting, within the scope of the ESA,
terms and conditions or prices to provide the best value to the
customer.
[[Page 66]]
(i) Within 3 working days, the SPM shall--
(A) Update the ESA;
(B) Provide an estimated date by which the update will be
accomplished; or
(C) Inform the contracting officer or requiring official that no
change will be made to the ESA.
(ii) If the SPM informs the contracting officer or requiring
official that no change will be made to the ESA terms and conditions or
prices, the contracting officer or requiring official may fulfill the
requirement by other means.
(iii) If the SPM does not respond within 3 working days or does not
plan to adjust the ESA within 90 days, the contracting officer or
requiring official may fulfill the requirement by other means.
(3) A management official designated by the department or agency may
waive the requirement to obtain commercial software or related services
through an ESA after the steps in paragraphs (e)(1) and (e)(2)(i) of
this section are complete. The rationale for use of an alternate source
shall be included in the waiver request and shall be provided to the
SPM.
PART 209_CONTRACTOR QUALIFICATIONS--Table of Contents
Subpart 209.1_Responsible Prospective Contractors
Sec.
209.101 Definitions.
209.104 Standards.
209.104-1 General standards.
209.104-4 Subcontractor responsibility.
209.104-70 Solicitation provisions.
209.105-2 Determinations and documentation.
209.106 Preaward surveys.
Subpart 209.2_Qualifications Requirements
209.202 Policy.
209.270 Aviation critical safety items.
209.270-1 Scope.
209.270-2 Definitions.
209.270-3 Policy.
209.270-4 Procedures.
Subpart 209.3 [Reserved]
Subpart 209.4_Debarment, Suspension, and Ineligibility
209.402 Policy.
209.403 Definitions.
209.405 Effect of listing.
209.405-1 Continuation of current contracts.
209.405-2 Restrictions on subcontracting.
209.406 Debarment.
209.406-1 General.
209.406-2 Causes for debarment.
209.406-3 Procedures.
209.407 Suspension.
209.407-3 Procedures.
209.409 Solicitation provision and contract clause.
209.470 Reserve Officer Training Corps and military recruiting on
campus.
209.470-1 Definition.
209.470-2 Policy.
209.470-3 Procedures.
209.470-4 Contract clause.
209.471 Congressional Medal of Honor.
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36313, July 31, 1991, unless otherwise noted.
Subpart 209.1_Responsible Prospective Contractors
Sec. 209.101 Definitions.
``Entity controlled by a foreign government,'' ``foreign
government,'' and ``proscribed information,'' are defined in the
provision at 252.209-7002, Disclosure of Ownership or Control by a
Foreign Government.
[59 FR 51132, Oct. 7, 1994]
Sec. 209.104 Standards.
Sec. 209.104-1 General standards.
(e) For cost-reimbursement or incentive type contracts, or contracts
which provide for progress payments based on costs or on a percentage or
stage of completion, the prospective contractor's accounting system and
related internal controls must provide reasonable assurance that--
(i) Applicable laws and regulations are complied with;
(ii) The accounting system and cost data are reliable;
(iii) Risk of misallocations and mischarges are minimized; and
(iv) Contract allocations and charges are consistent with invoice
procedures.
(g)(i) Ownership or control by the government of a terrorist
country. (A) Under
[[Page 67]]
10 U.S.C. 2327(b), a contracting officer shall not award a contract of
$100,000 or more to a firm or to a subsidiary of a firm when a foreign
government--
(1) Either directly or indirectly, has a significant interest--
(i) In the firm; or
(ii) In the subsidiary or the firm that owns the subsidiary; and
(2) Has been determined by the Secretary of State under 50 U.S.C.
App. 2405(j)(1)(A) to be a government of a country that has repeatedly
provided support for acts of international terrorism.
(B) The Secretary of Defense may waive the prohibition in paragraph
(g)(i)(A) of this subsection in accordance with 10 U.S.C. 2327(c). This
waiver authority may not be delegated.
(ii) Ownership or control by a foreign government when access to
proscribed information is required to perform the contract. (A) Under 10
U.S.C. 2536(a), no DoD contract under a national security program may be
awarded to an entity controlled by a foreign government if that entity
requires access to proscribed information to perform the contract.
(B) Whenever the contracting officer has a question about
application of the provision at 252.209-7002, the contracting officer
may seek advice from the Director, Defense Security Programs, Office of
the Assistant Secretary of Defense for Command, Control, Communications
and Intelligence.
(C) In accordance with 10 U.S.C. 2536(b)(1)(A), the Secretary of
Defense may waive the prohibition in paragraph (g)(ii)(A) of this
subsection upon determining that the waiver is essential to the national
security interest of the United States. The Secretary has delegated
authority to grant this waiver to the Assistant Secretary of Defense
Command, Control, Communications and Intelligence. Waiver requests,
prepared by the requiring activity in coordination with the contracting
officer, shall be processed through the Director of Defense Procurement
and Acquisition Policy, Office of the Under Secretary of Defense
(Acquisition, Technology, and Logistics), and shall include a proposed
national interest determination. The proposed national interest
determination, prepared by the requiring activity in coordination with
the contracting officer, shall include:
(1) Identification of the proposed awardee, with a synopsis of its
foreign ownership (include solicitation and other reference numbers to
identify the action);
(2) General description of the acquisition and performance
requirements;
(3) Identification of the national security interests involved and
the ways award of the contract helps advance those interests;
(4) The availability of another entity with the capacity, capability
and technical expertise to satisfy defense acquisition, technology base,
or industrial base requirements; and
(5) A description of any alternate means available to satisfy the
requirement, e.g., use of substitute products or technology or alternate
approaches to accomplish the program objectives.
(D) In accordance with 10 U.S.C. 2536(b)(1)(B), the Secretary of
Defense may, in the case of a contract awarded for environmental
restoration, remediation, or waste management at a DoD facility, waive
the prohibition in paragraph (g)(ii)(A) of this subsection upon--
(1) Determining that--
(i) The waiver will advance the environmental restoration,
remediation, or waste management objectives of DoD and will not harm the
national security interests of the United States; and
(ii) The entity to which the contract is awarded is controlled by a
foreign government with which the Secretary is authorized to exchange
Restricted Data under section 144c. of the Atomic Energy Act of 1954 (42
U.S.C. 2164(c)); and
(2) Notifying Congress of the decision to grant the waiver. The
contract may be awarded only after the end of the 45-day period
beginning on the date the notification is received by the appropriate
Congressional committees.
[58 FR 28464, May 13, 1993, as amended at 59 FR 51131, 51132, Oct. 7,
1994; 60 FR 29497, June 5, 1995; 62 FR 34121, June 24, 1997; 63 FR
11851, Mar. 11, 1998; 63 FR 14837, Mar. 27, 1998; 65 FR 39704, June 27,
2000; 67 FR 4208, Jan. 29, 2002; 68 FR 7439, Feb. 14, 2003]
[[Page 68]]
Sec. 209.104-4 Subcontractor responsibility.
Generally, the Canadian Commercial Corporation's (CCC) proposal of a
firm as its subcontractor is sufficient basis for an affirmative
determination of responsibility. However, when the CCC determination of
responsibility is not consistent with other information available to the
contracting officer, the contracting officer shall request from CCC and
any other sources whatever additional information is necessary to make
the responsibility determination.
Sec. 209.104-70 Solicitation provisions.
(a) Use the provision at 252.209-7001, Disclosure of Ownership or
Control by the Government of a Terrorist Country, in all solicitations
expected to result in contracts of $100,000 or more. Any disclosure that
the government of a terrorist country has a significant interest in an
offeror or a subsidiary of an offeror shall be forwarded through the
head of the agency to the Director of Defense Procurement and
Acquisition Policy, ATTN: OUSD(AT&L)DPAP/(PAIC), 3060 Defense Pentagon,
Washington, DC 20101-3060.
(b) Use the provision at 252.209-7002, Disclosure of Ownership or
Control by a Foreign Government, in all solicitations, including those
subject to the procedures in FAR part 13, when access to proscribed
information is necessary to perform a DoD contract under a national
security program.
[58 FR 28464, May 13, 1993, as amended at 59 FR 51131, Oct. 7, 1994; 62
FR 34122, June 24, 1997; 63 FR 11851, Mar. 11, 1998; 63 FR 14837, Mar.
27, 1998; 65 FR 39704, June 27, 2000; 67 FR 4208, Jan. 29, 2002; 68 FR
7439, Feb. 14, 2003]
Sec. Sec. 209.105-2 Determinations and documentation.
(a) For guidance on submission of determinations to the appropriate
debarring and suspending official, see PGI 209.105-2(a).
[69 FR 74990, Dec. 15, 2004]
Sec. 209.106 Preaward surveys.
When requesting a preawared survey, follow the procedures at PGI
209.106.
[69 FR 65089, Nov. 10, 2004]
Subpart 209.2_Qualifications Requirements
Sec. 209.202 Policy.
(a)(1) Except for aviation critical safety items, obtain approval in
accordance with PGI 209.202(a)(1) when establishing qualification
requirements. See 209.270 for approval of qualification requirements for
aviation critical safety items.
[69 FR 65089, Nov. 10, 2004]
Sec. 209.270 Aviation critical safety items.
Sec. 209.270-1 Scope.
This section--
(a) Implements Section 802 of the National Defense Authorization Act
for Fiscal Year 2004 (Public Law 108-136); and
(b) Prescribes policy and procedures for qualification requirements
in the procurement of aviation critical safety items and the
modification, repair, and overhaul of those items.
[69 FR 55988, Sept. 17, 2004]
Sec. 209.270-2 Definitions.
As used in this section--
Aviation critical safety item means a part, an assembly,
installation equipment, launch equipment, recovery equipment, or support
equipment for an aircraft or aviation weapon system if the part,
assembly, or equipment contains a characteristic any failure,
malfunction, or absence of which could cause--
(1) A catastrophic or critical failure resulting in the loss of or
serious damage to the aircraft or weapon system;
(2) An unacceptable risk of personal injury or loss of life; or
(3) An uncommanded engine shutdown that jeopardizes safety.
Design control activity means the systems command of a military
department that is specifically responsible for ensuring the air
worthiness of an aviation system or equipment in which an aviation
critical safety item is to be used.
[69 FR 55988, Sept. 17, 2004]
[[Page 69]]
Sec. 209.270-3 Policy.
(a) The head of the contracting activity responsible for procuring
an aviation critical safety item may enter into a contract for the
procurement, modification, repair, or overhaul of such an item only with
a source approved by the head of the design control activity.
(b) The approval authorities specified in this section apply instead
of those otherwise specified in FAR 9.202(a)(1), 9.202(c), or 9.206-
1(c), for the procurement, modification, repair, and overhaul of
aviation critical safety items.
[69 FR 55988, Sept. 17, 2004, as amended at 70 FR 57190, Sept. 30, 2005]
Sec. 209.270-4 Procedures.
(a) The head of the design control activity shall--
(1) Identify items that meet the criteria for designation as
aviation critical safety items. See additional information at PGI
209.270-4;
(2) Approve qualification requirements in accordance with procedures
established by the design control activity; and
(3) Qualify and identify aviation critical safety item suppliers and
products.
(b) The contracting officer shall--
(1) Ensure that the head of the design control activity has
determined that a prospective contractor or its product meets or can
meet the established qualification standards before the date specified
for award of the contract;
(2) Refer any offers received from an unapproved source to the head
of the design control activity for approval. The head of the design
control activity will determine whether the offeror or its product meets
or can meet the established qualification standards before the date
specified for award of the contract; and
(3) Refer any requests for qualification to the design control
activity.
(c) See 246.407 (S-70) and 246.504 for quality assurance
requirements.
[69 FR 55988, Sept. 17, 2004, as amended at 70 FR 57190, Sept. 30, 2005]
Subpart 209.3 [Reserved]
Subpart 209.4_Debarment, Suspension, and Ineligibility
Sec. 209.402 Policy.
(d) The uniform suspension and debarment procedures to be followed
by all debarring and suspending officials are set out in appendix H to
this chapter.
(e) The department or agency shall provide a copy of the Debarment
and Suspension Procedures at DFARS appendix H to this chapter to
contractors at the time of their suspension or when they are proposed
for debarment, and upon request to other interested parties.
[59 FR 27668, May 27, 1994]
Sec. 209.403 Definitions.
Debarring and suspending official. (1) For DoD, the designees are--
Army--Commander, U.S. Army Legal Services Agency
Navy--The General Counsel of the Department of the Navy
Air Force--Deputy General Counsel (Contractor Responsibility)
Defense Advanced Research Projects Agency--The Director
Defense Information Systems Agency--The General Counsel
Defense Logistics Agency--The Special Assistant for Contracting
Integrity
National Imagery and Mapping Agency--The General Counsel
Defense Threat Reduction Agency--The Director
National Security Agency--The Senior Acquisition Executive
Missile Defense Agency--The General Counsel
Overseas installations--as designated by the agency head
(2) Overseas debarring and suspending officials--
(i) Are authorized to debar or suspend contractors located within
the official's geographic area of responsibility under any delegation of
authority they receive from their agency head.
(ii) Debar or suspend in accordance with the procedures in FAR
subpart 9.4 or under modified procedures approved by the agency head
based on consideration of the laws or customs of the foreign countries
concerned.
(iii) In addition to the bases for debarment in FAR 9.406-2, may
consider the following additional bases--
[[Page 70]]
(A) The foreign country concerned determines that a contractor has
engaged in bid-rigging, price-fixing, or other anti-competitive
behavior; or
(B) The foreign country concerned declares the contractor to be
formally debarred, suspended, or otherwise ineligible to contract with
that foreign government or its instrumentalities.
(3) The Defense Logistics Agency Special Assistant for Contracting
Integrity is the exclusive representative of the Secretary of Defense to
suspend and debar contractors from the purchase of Federal personal
property under the Federal Property Management Regulations (41 CFR 101-
45.6) and the Defense Materiel Disposition Manual (DoD 4160.21-M).
[56 FR 36313, July 31, 1991, as amended at 56 FR 67212, Dec. 30, 1991;
59 FR 27669, May 27, 1994; 60 FR 61593, Nov. 30, 1995; 61 FR 50452,
Sept. 26, 1996; 63 FR 11528, Mar. 9, 1998; 64 FR 51075, Sept. 21, 1999;
64 FR 62985, Nov. 18, 1999; 68 FR 7439, Feb. 14, 2003; 70 FR 14573, Mar.
23, 2005]
Sec. 209.405 Effect of listing.
(a) Under 10 U.S.C. 2393(b), when a department or agency determines
that a compelling reason exists for it to conduct business with a
contractor that is debarred or suspended from procurement programs, it
must provide written notice of the determination to the General Services
Administration, Office of Acquisition Policy. Examples of compelling
Reasons are--
(i) Only a debarred or suspended contractor can provide the supplies
or services;
(ii) Urgency requires contracting with a debarred or suspended
contractor;
(iii) The contractor and a department or agency have an agreement
covering the same events that resulted in the debarment or suspension
and the agreement includes the department or agency decision not to
debar or suspend the contractor; or
(iv) The national defense requires continued business dealings with
the debarred or suspended contractor.
(b)(i) The Procurement Cause and Treatment Code ``H'' annotation in
the GSA List of Parties Excluded from Federal Procurement and
Nonprocurement Programs identifies contractors that are declared
ineligible for award of a contract or subcontract because of a violation
of the Clean Air Act (42 U.S.C. 7606) or the Clean Water Act (33 U.S.C.
1368).
(ii) Under the authority of 40 CFR 32.215(b), the agency head may
grant an exception permitting award to a Code ``H'' ineligible
contractor if it is in the paramount interest of the United States.
(A) The agency head may delegate this exception authority to a level
no lower than a general or flag officer or a member of the Senior
Executive Service.
(B) The official granting the exception must provide written notice
to the Environmental Protection Agency debarring official.
[65 FR 52955, Aug. 31, 2000]