# DLAD PGI

- PGI 17.9502 Tailored Logistics Support Contracting Program of Instruction
- PGI 17.9503(e):
- PGI 17.9504 Pricing
- PGI 17.9505 (a) Pre-award tools include, but are not limited to those found at https://today.dla.mil/j-3/j-336/logisticspolicy/procpolicy/default.htm
- PGI 17.9507(c)(ii). Price Review tools include but are not limited to those found at https://today.dla.mil/j-3/j-336/logisticspolicy/procpolicy/default.htm
- PGI 17.9507 (c)(v) Management tools for oversight include, but are not limited to those found at https://today.dla.mil/j-3/j-336/logisticspolicy/procpolicy/default.htm
- PGI 17.9602 Ordering procedures.

PGI 17.9502 Tailored Logistics Support Contracting Program of Instruction

The following courses are suggested as part of a core curriculum. Supply chains are encouraged to supplement this list with training pertinent to the acquisition at hand, such as units of instruction reflective of the commodities or industries involved. Supply chains shall submit an instruction plan relevant to their TLS programs to J-3312 for approval .

• Price Reasonableness and Negotiation Skills Practicum

• Commercial Item Determination –On-line Course (CLC 020)

• Contract Pricing Refresher

• Pricing Catalogs for Prime Vendor Programs

• Contract Administration (including closeout, CORs and COTRs)

• Use of Non-DoD contracts

• Domestic Content Update and Refresher (see also the DAU Course “Berry Amendment Training”

• Wide Area Work Flow

• CQMPs and the Acquisition Review Board Process

• Contract Documentation Requirements

• Contemporary Approaches to Acquisition in the Information Age (DAU)

PGI 17.9503(e):

An example of a contract management plan is atttached from DSCP’s Subsistence Conus PV program: (example: contract mgt plan.pdf) (see https://today.dla.mil/j-3/j-336/logisticspolicy/procpolicy/default.htm )

PGI 17.9504 Pricing

(a) A PV Contract must be able to comply fully with one of the following established PV Pricing Models:

Pricing Model | Initial Price Reasonableness Determination | Post-Award Price Reasonableness Determination | Audits
Fixed Price utilizing Distribution and Pricing Agreement (DAPA) and Federal Supply Schedule (FSS) pricing* *e.g. Medical/Surgical and Pharmaceutical Variation: Medical/Surgical items not covered by DAPA e.g. ACPOP | Competitively awarded using best value. All prices are determined fair and reasonable by Contracting Officer before time of award. Contracts are awarded, but items are unpriced until becoming a part of the 1,000 item Core List. | The Contracting Officer makes 100% fair and reasonable determinations for new items and price changes. The Contracting Officer identifies the historical items constituting 75% of the total dollar value, determines them fair and reasonable, and creates a 1,000 item Core List. Items in the 1,000 Core List change monthly based on usage frequency from prior months. All items in the 1,000 item Core List must be determined fair and reasonable before being ordered. For items not in the 1,000 Core List, with an extended value less than $2500, a representative statistical sampling of lines sufficient to provide a 90% confidence level shall be reviewed for fair and reasonable pricing on a post-award basis no later than 60 days after award. | Monthly Pricing Reviews,, Quarterly Contract Audits, Annually Audit Monthly Pricing Reviews, Quarterly Contract Audits, Annually Audit
Fixed Price Utilizing Market Basket* * e.g. Garrison Feeding | Competitively awarded using best value. Market basket items must represent at least 75% of the anticipated dollar value of the planned acquisition. The prices of all market basket items are determined fair and reasonable by Contracting Officer before time of award. NAPA and Central Contract pricing may apply. | The Contracting Officer makes 100% fair and reasonable determinations for new items and price changes. | Monthly Pricing Reviews, Quarterly Contract Audits, Annually Audit

(b) A Modified PV Contract or other Tailored Logistics Support contract must be able to comply fully with one of the following pricing models:

Pricing Model | Initial Price Reasonableness Determination | Post-Award Price Reasonableness Determination | Audits
Fixed Price Utilizing Market Basket* * e.g. MRO Supplies Variation: Fixed Price Utilizing Market Basket, >$2500 e.g. Metals | Competitively awarded using best value. Market basket items must represent at least 75% of the anticipated dollar value of the planned acquisition. The prices of all market basket items are determined fair and reasonable by Contracting Officer before time of award. Competitively awarded using best value. Market basket items must represent at least 75% of the anticipated dollar value of the planned acquisition. The extended value of all market basket items over $2500 are determined fair and reasonable by Contracting Officer before time of award. | If the Tailored Logistics Support Purchasing Review clause is applicable, and the contractor complies with the clause, the Contracting Officer makes fair and reasonable determinations as follows for new items, price changes, and those items not included in the market basket: - For line items with an extended value of less than $2,500, a representative statistical sampling of lines sufficient to provide a 90% confidence level shall be reviewed on post-award basis no later than 60 days after award. - For line items with an extended value of $2,500 to $24,999, 100% of the items with a percentage of determinations performed pre-order and the remainder post-order. The minimum percentage for pre-order is 30%, with the remainder done no later than 60 days after award. - For line items with an extended value greater than $25,000, 100% of the items shall be determined fair and reasonable prior to any order being processed. If the Tailored Logistics Support Purchasing Review clause is not applicable, the Contracting Officer makes 100% fair and reasonable determinations for new items and price changes. The Contracting Officer reviews 100% of incidental services and negotiates proper scope, pricing, and rates of labor categories prior to commencement of services. If the Tailored Logistics Support Purchasing Review clause is applicable, and the contractor complies with the clause, the Contracting Officer makes fair and reasonable determinations as follows for new items, price changes, and those items not included in the market basket: -For line items with an extended value of less than $2,500, a representative statistical sampling of lines sufficient to provide a 90% confidence level shall be reviewed on post-award basis no later than 60 days after award. -For line items with an extended value of $2500 or greater, the contracting officer makes 100% fair and reasonable determinations of items. If the Tailored Logistics Support Purchasing Review clause is not applicable, the Contracting Officer makes 100% fair and reasonable determinations for new items and price changes. The Contracting Officer reviews 100% of incidental services and negotiates proper scope, pricing, and rates of labor categories prior to commencement of services. | Monthly Pricing Reviews, Quarterly Contract Audits, Annually Audit Monthly Pricing Reviews, Quarterly Contract Audits, Annually Audit
Fixed Price Utilizing Market Basket and competition of each order* * e.g. Special Ops, MRO Centcom, Fire Fighting and Emergency Services, Lumber | Competitively awarded using best value. Market basket items must represent at least 75% of the anticipated dollar value of the planned acquisition. The prices of all market basket items are determined fair and reasonable by Contracting Officer before time of award. | The Contracting Officer competes each order among prime vendors. [For Special Ops, fair opportunity is provided to all contractors for all orders $2,500 or greater.] The Contracting Officer makes 100% fair and reasonable determinations for new items, price changes, and those items not included in the market basket. The Contracting Officer reviews 100% of incidental services and negotiates proper scope, pricing, and rates of labor categories prior to commencement of services. | Monthly Pricing Reviews, Quarterly Contract Audits, Annually Audit
Fixed Price Utilizing Pre-Priced Core List e.g. Integrated Prime Vendor (IPV) | Competitively awarded Core List using best value . Core List is a percentage of the total item requirements. Initial Core List items are determined fair and reasonable by Contracting Officer before time of award. Only items on the Core List may then be ordered. Unpriced items representing the balance of total requirements are placed on a Schedule of Unpriced items, which are not available until priced. | The Contracting Officer makes 100% fair and reasonable determinations for price changes or adding an item to the Core List from the Schedule of Unpriced Items. Over time, eventually all requirements identified are expected to be included in the Core List. Only items on the Core List may be ordered. The Contracting Officer also reviews 100% of incidental services and negotiates proper scope, pricing, and rates of labor categories prior to commencement of services. | Monthly Pricing Reviews, Quarterly Contract Audits, Annually Audit
Tailored Logistics Support Service Contract with competition of each order* * e.g. MRO Services | Competitively awarded using best value. Vendors evaluated on price using sample tasks. | The Contracting Officer competes each order among vendors. | Monthly Pricing Reviews, Quarterly Contract Audits, Annually Audit

PGI 17.9505 (a) Pre-award tools include, but are not limited to those found at https://today.dla.mil/j-3/j-336/logisticspolicy/procpolicy/default.htm

PGI 17.9507(c)(ii). Price Review tools include but are not limited to those found at https://today.dla.mil/j-3/j-336/logisticspolicy/procpolicy/default.htm

PGI 17.9507 (c)(v) Management tools for oversight include, but are not limited to those found at https://today.dla.mil/j-3/j-336/logisticspolicy/procpolicy/default.htm

Table of Contents

PGI 17.9602 Ordering procedures.

(a) Non-Economy Act assisted acquisition orders for work and services outside the Department of Defense should ordinarily be executed by issuance to the non-DOD agency of a DD Form 448, “Military Interdepartmental Purchase Request (MIPR).” In those instances where an alternative document such as a DD 1348-1 or -6 is used, it must provide information consistent with the MIPR, to include the purchase request number and the Activity Address Code (DoDAAC). A non-Economy Act order placed by DLA for its own use or in support of a military customer shall comply with the documentation standards in Volume 11A, Chapter 1 of the DOD Financial Management Regulations (FMR).

(b) Non-Economy Act orders using either assisted or direct acquisition methods must be supported with the following, which are the responsibility of the requesting official in a DLA or other Defense activity, with assistance from the DLA contracting activity:

(1) Conduct market research;

(2) Perform acquisition planning;

(3) Prepare the Independent Government Cost Estimate (IGCE);

(4) Prepare the statement of work (SOW);

(5) Establish the basis for award, including evaluation criteria;

(6) Ensure the receipt and compliance of MIPR (or other execution document) acceptance by the supporting non-DOD activity;

(7) Assist in the technical evaluation;

(8) Establish the quality assurance plan, which addresses the following:

(A) COR/COTR responsibilities for receiving reports/invoices and inspection and acceptance duties;

(B) Contract Data Requirements List (CDRL) procedures, required reports, deliverables, and contract performance reports;

(C) Property/Equipment management;

(D) Contract oversight. (The requesting official will not only include this in the QAP, but will also retain some share of responsibility for oversight of contract performance. See DLA PGI 17.9605(a), below.)

(9) Perform funds management/record-keeping duties, to include:

(A) Draw-down of funds;

(B) Contract reconciliation;

(C) Initiation of action to deobligate unused funds;

(D) Oversight of billing/reporting.

(10) Update all POCs as necessary throughout the acquisition.

(c) Assisted- or direct-acquisition non-Economy Act orders from a customer to DLA must include the following, as must assisted acquisition orders from DLA to a non-DOD agency:

(1) A firm, clear, specific, and complete description of the goods or services ordered. The use of generic descriptions is not acceptable. If the description is contained in more than one document, such as an item listing on one page and a price list on another, the documents should refer to one another, and the obligation document (e.g., MIPR or manual requisition) should be signed by a responsible official from the requesting activity.

(2) Specific delivery or performance requirements.

(3) A proper fund citation.

(4) Payment terms and conditions (e.g., direct cite or reimbursement; provisions of advanced payments).

(5) Department of Defense Activity Address Code (DoDAAC).

(6) In the case of assisted acquisition orders, the DLA order to the non-DOD agency must also include specific non-Economy Act statutory authority, such as the Acquisition Services Fund, through which purchases are authorized to be made from the General Services Administration (GSA) (see 41 U.S.C. 251 et seq. and 40 U.S.C. 501); or Franchise Fund authority (first established by P.L. 103-356, Title IV, section 403; see 31 U.S.C. 501 note), by which other Federal agencies may enlist the support of the Departments of the Treasury or Interior, among others.

(d) For non-Economy Act orders valued greater than the simplified acquisition threshold, the requesting official must provide, for both assisted and direct acquisitions:

(1) Market research and acquisition planning. The DLA contracting officer or other contracting official must either receive the market research and acquisition planning from the requiring activity, or accomplish them him- or herself, and prepare or provide documentation thereof for inclusion in the contract file.

(2) A statement of work that is specific, definite, and certain in terms of both the work encompassed by the order and the terms of the order itself.

(3) Terms, conditions, and requirements to comply with applicable DOD-unique statutes, regulations, directives and other requirements.