# DLAD PART 1

- SUBPART 1.1 - PURPOSE, AUTHORITY, ISSUANCE

- 1.101 Purpose.
- 1.104 Applicability.
- 1.105 Issuance.

- 1.105-1
- 1.105-2 Arrangement of regulations.
- 1.105-3 Copies

- 1.108 FAR Conventions

- SUBPART 1.2 - ADMINISTRATION

- 1.201-90 Maintenance of the DLAD.
- 1.201-91 Amendment of Regulations.
- 1.201-92 DLAD changes.
- 1.201-93 Dissemination and effective date of the regulation (including appendices, revisions, supplements, and manuals).

- SUBPART 1.3 - AGENCY ACQUISITION REGULATIONS

- 1.301 Policy.

- 1.301-90 Contracting office guidance.
- 1.301-91 Contracting office provisions and clauses. The authority and procedural requirements addressed in (a) through (d) of this paragraph do not apply to either the development or use of a new Economic Price Adjustment (EPA) clause or a revision to an existing EPA clause, which require HQ DLA approval in accordance with 16.203-3(93):

- 1.304 Agency control and compliance procedures.
- 1.390 DLAD.

- SUBPART 1.4 - DEVIATIONS FROM THE FAR

- 1.403 Individual deviations.
- 1.404 Class deviations.
- 1.490 Submission of requests for deviations.
- 1.491 Control of deviations.
- 1.492 - Streamlined Solicitation for Defense Energy Support Center Contracts (DEVIATION)
- 1.493 National Performance Review (NPR) Reinvention Laboratory Deviation Authority.

- SUBPART 1.5 - AGENCY AND PUBLIC PARTICIPATION

- 1.501 Solicitation of agency and public views.

- 1.501-2 Opportunity for public comments.

- 1.590 Changes in contracting processes, techniques, or methods.

- SUBPART 1.6 - CONTRACTING AUTHORITY AND RESPONSIBILITIES

- 1.601 General.

- 1.601-90 90 Critical Acquisition Responsibilities
- 1.601-91 Contract Quality Management Plan.

- 1.602 Contracting officers.

- 1.602-1 Authority.
- 1.602-2 Responsibilities.
- 1.602-3 Ratification of unauthorized commitments.
- 1.602-90 Nonappropriated funds.

- 1.603 Selection, appointment, and termination of appointment.

- 1.603-1 General.
- 1.603-2 Selection.
- 1.603-3 Appointment.
- 1.603-90 Ordering Officers.
- 1.603-91 Micro-purchase contracting authority.
- 1.603-92 Contracting Officer Review Program.
- 1.603-93 – Requirements for evaluations of contracting officers and others in the contracting career field - In accordance with Department of Defense Instruction (DoDI) 5000.66 “Operation of the Defense Acquisition, Technology, and Logistics Workforce Education, Training, and Career Development Program,” December 21, 2005 --

- 1.690 Contract clearance and oversight process.

- 1.690-1 General.
- 1.690-2 Policy.
- 1.690-3 Establishment of clearance approval authority.
- 1.690-4 Contract clearance standards. For details see Mandatory PGI 1.690-4.
- 1.690-5 Types of actions requiring contract clearance.
- 1.690-6 Contracts/actions requiring HQ DLA clearance.
- 1.690-7 For details see Mandatory PGI 1.690-7.
- 1.690-8 Waiver of HQ DLA Review. For details see Mandatory PGI 1.690-8.

- 1.691 Legal review.
- 1.692 Confirmation of quantity and technical requirements.

- SUBPART 1.7 - DETERMINATIONS AND FINDINGS

- 1.703 Class determinations and findings.
- 1.704 Content.

- SUBPART 1.9 - ADMINISTRATION OF DLAD

- 1.900 Administration and explanation.

PART 1

FEDERAL ACQUISITION REGULATIONS SYSTEM

TABLE OF CONTENTS

SUBPART 1.1 - PURPOSE, AUTHORITY, ISSUANCE

1.101 Purpose.

1.104 Applicability.

1.105 Issuance.

1.105-1 Publication and code arrangement.

1.105-2 Arrangement of regulations.

1.105-3 Copies

1.108 FAR Conventions

SUBPART 1.2 - ADMINISTRATION

1.201-90 Maintenance of the DLAD.

1.201-91 Amendment of regulations.

1.201-92 DLAD changes.

1.201-93 Dissemination and effective date of the regulation.

SUBPART 1.3 - AGENCY ACQUISITION REGULATIONS

1.301 Policy.

1.301-90 Contracting office guidance.

1.301-91 Contracting office clauses.

1.304 Agency control and compliance procedures.

1.390 DLAD.

SUBPART 1.4 - DEVIATIONS FROM THE FAR

1.403 Individual deviations.

1.404 Class deviations.

1.490 Submission of requests for deviations.

1.491 Control of deviations.

1.492 Streamlined Solicitation for Defense Fuel Supply Center

(DFSC) Contracts.

1.493 National Performance Review (NPR) Reinvention Laboratory

Deviation Authority.

SUBPART 1.5 - AGENCY AND PUBLIC PARTICIPATION

1.501 Solicitation of agency and public views.

1.501-2 Opportunity for public comments.

1.590 Changes in contracting processes, techniques, or methods.

SUBPART 1.6 - CONTRACTING AUTHORITY AND RESPONSIBILITIES

1.601 General.

1.601-90 Center Senior Procurement Official.

1.601-91 Contract Quality Management Plan.

1.602 Contracting officers.

1.602-1 Authority.

1.602-2 Responsibilities.
1.602-2(91) Selection, appointment, evaluation, and termination of

appointment of contracting officers' representatives, and

contracting officers' technical representatives

1.602-3 Ratification of unauthorized commitments.

1.602-90 Nonappropriated funds.

1.603 Selection, appointment, and termination of appointment.

1.603-1 General.

1.603-2 Selection.

1.603-3 Appointment.

1.603-90 Ordering officers.

1.603-91 Micro-purchase contracting authority.

1.603-92 Contracting officer review program.

1.603-93 Selection, appointment, & termination of appointment

1.690 Contract Clearance and Oversight Process.

1.690-1 General.

1.690-2 Policy.

1.690-3 Establishment of clearance approval authority.

1.690-4 Contract clearance standards.

1.690-5 Types of actions requiring contract clearance.

1.690-6 Contracts/actions requiring HQ DLA clearance.

1.690-7 Notification, review and approval procedures.

1.690-8 Waiver of HQ DLA Review.

1.691 Legal review.

1.692 Confirmation of quantity and technical requirements.

SUBPART 1.7 - DETERMINATIONS AND FINDINGS

1.703 Class determinations and findings.

1.704 Content

SUBPART 1.9 - ADMINISTRATION OF DLAD

1.900 Administration and explanation.

SUBPART 1.1 - PURPOSE, AUTHORITY, ISSUANCE

1.101 Purpose.

The Defense Logistics Acquisition Directive (DLAD) is issued by the Deputy Director, Logisitics Operations,(J-3), by authority of the Director, Defense Logistics Agency (DLA). It implements and supplements the Federal Acquisition Regulation (FAR), the Defense FAR Supplement (DFARS), the DFARS Procedures, Guidance and Information (PGI) and other Department of Defense publications and, pursuant to FAR 1.304, establishes DLA procedures relating to the acquisition of supplies and services under the authority of Chapter 137, Title 10 of the United States Code, or other statutory authority. This DLAD is not a stand-alone document and shall be read in conjunction with the FAR, DFARS, DFARS PGI,and the DLA One Book.

1.104 Applicability.

> (a) This directive is applicable to the contracting function at all DLA activities.

1.105 Issuance.

1.105-1

1.105-2 Arrangement of regulations.

(c) References and citations.

(2) The Defense Logistics Acquisition Directive 5025.30 shall be referred to as the DLAD.

1.105-3 Copies

(90) This directive is available on the Internet directly from the J-71 site at:

http://www.dla.mil/j-3/j-336/default.htm and may be downloaded in full text or by Part number. From the effective date of DLAD Revision 5, the Directive will be continually updated on this site as changes occur. Therefore, the most current version is found at the above website. This directive is also transmitted through the Distributed Minicomputer Systems (DMINS) E-Mail by J-71 to DLA field activities that request it in that manner. It is also available through DLAPS on the DLA HQ Local Area Network (LAN). It is available on-line with full data base capability from private sources. DLA field activities desiring this directive in the latter mode should contact their local installation supporting library/publications personnel for subscription requests.

(91) The companion resource, DLAD Procedures, Guidance and Information (PGI), is available electronically via the World Wide Web at

http://www.dla.mil/j-3/j-336/DLADPGI/default.htm .

1.108 FAR Conventions

(c) Dollar thresholds. Subparagraphs (90)-(92) below provide guidance on how to determine the TINA threshold.

(90) The estimated contract value for an award action is to be calculated using the maximum quantity of the specific supplies or services priced in the award of a negotiated contract plus the maximum quantity of these same supplies or services obtainable under each applicable fixed and/or flexibly priced contract option included in the contract at time of award. Other modifications stand alone. The estimated contract value shall not include any amount for the quantity of any other items that are included in the contract on, or may be added after, the award date, but are unpriced as of award (e.g., items covered by an unpriced or undefinitized surge or other option).

(91) No amount shall be included in any dollar threshold estimate based on the value of any “price pending” item or option(s) or unpriced option(s) (which normally include a pre-established pricing methodology to establish firm prices or not-to-exceed ceiling prices subject to later definitization). As explained in DFARS PGI 215.403-1(C)(4)(A)(4), there is no price for unpriced supplies or services in such cases. The determination of whether TINA is applicable to such supplies or services shall be made at the time of exercise of such options when the price is determined.

(92) The contracting officer shall include in the official contract file, the calculations of the estimates of these maximum values of items covered in the award and the subsequent options cited in (90) and (91) above; and the estimate of the maximum value of items subsequently included by modification or other action expanding the number of items of supplies or services added to the contract.

SUBPART 1.2 - ADMINISTRATION

1.201-90 Maintenance of the DLAD.

1.201-91 Amendment of Regulations.

Recommendations for amending the FAR or the DFARS shall be submitted to HQ DLA, ATTN: J-71. Submittals shall be in the form of a memorandum (without signature block) to the Director, DAR Council and be formatted in accordance with the DAR case guidance provided at 90.7. Recommendations for amending the DLAD shall be submitted in the form of a letter signed by the chief of the contracting office and be in the format of I. Problem; II. Recommendation; and III. Discussion.

1.201-92 DLAD changes.

Numbered DLAD changes are issued periodically by the Director, Acquisition Management , to revise and update the DLAD.

1.201-93 Dissemination and effective date of the regulation (including appendices, revisions, supplements, and manuals).

(a) Chiefs of the contracting office shall ensure that the FAR, DFARS, DFARS PGI, and DLAD, DLA One Book including revisions, are accessible by all interested individuals..

(b) Compliance with the DLAD, including any revision to the DLAD, shall be permissive on the date of the revision and shall be mandatory 30 days after issuance, unless otherwise provided in the revision.

SUBPART 1.3 - AGENCY ACQUISITION REGULATIONS

1.301 Policy.

(a) Implementation and supplementation of the FAR, DFARS, and DFARS PGI is contained in the Defense Logistics Acquisition Directive under the authorization and subject to the authority of the Director, Acquisition Management (J-7). The DLAD contains - -

(1) Clear requirements and procedures of law;

(2) Mandatory DLA-wide policy;

(3) Deviations from higher level regulations; and

(4) Designations/delegations of contracting authority.

(b) Relevant procedures, guidance, and information (PGI) that do not meet the criteria in paragraph (a) of this subsection are issued in DLAD PGI.

1.301-90 Contracting office guidance.

(a) Procedural guidance relative to the FAR, DFARS, and/or DLAD may be issued by heads of contracting activities consistent with FAR 1.304 and DFARS 201.304. This authority is delegable to the chief of the contracting office without power of redelegation. In addition, the Director, Acquisition Management, (J-7) , has delegated this authority to the Commander, Defense Reutilization and Marketing Service (DRMS). Requests for approval of any regulatory document meeting the criteria prescribed in DFARS 201.304(1) and (3) shall be submitted to J-71 for submission by the Director, Acquisition Management, (J-7) , to the DAR Council Director for approval by the Director, Defense Procurement and Acquisition Policy. The format, general plan, and numbering system of procedural guidance shall be the same as FAR, DFARS, and DLAD.

(b) Defense Supply Centers and DRMS shall furnish HQ DLA, ATTN: J-71, one copy of each procedural instruction for review after publication. Contracting offices need not separately request approval under DFARS 201.304(1) and will, based on the copy of the procedures provided, be advised by letter if the procedure is disapproved.

1.301-91 Contracting office provisions and clauses. The authority and procedural requirements addressed in (a) through (d) of this paragraph do not apply to either the development or use of a new Economic Price Adjustment (EPA) clause or a revision to an existing EPA clause, which require HQ DLA approval in accordance with 16.203-3(93):

(a) Provisions and clauses that are developed as a result of negotiations or which fulfill a specific and unique requirement of the acquisition, that do not constitute a deviation from higher level regulations or from DLAD, and that do not require the approval of the Director of Defense Procurement and Acquisition Policy (DPAP), shall be approved by the Chief of the Contracting Office (CCO) for essentiality, appropriateness, and sufficiency, and reviewed by cognizant Office of Counsel prior to incorporation into a solicitation or contract. The CCO may delegate this authority to a level no lower than the Policy Chief. These provisions and clauses can be approved for one time use only, i.e., for use in a single acquisition or contract. One time use provisions and clauses are not assigned DLAD numbers, but shall be identified in accordance with FAR 52.103 by title, date, and name of organization that developed them. Upon approval, a copy shall be forwarded to HQ DLA, ATTN: J-7.

(b) Requests for proposed repetitive use or “substantially the same as” provisions and clauses shall be signed by the cognizant CCO, accompanied by prescriptive language for their use on either an enterprise or non-enterprise basis, and forwarded to HQ DLA, ATTN: J-71 , for review and approval prior to implementation. This authority may be delegated to a level no lower than the Policy Chief. They shall have been reviewed for legal sufficiency prior to forwarding to HQ. These are provisions and clauses that are not deviations and do not otherwise require approval by DPAP. J-71 shall review these provisions and clauses for essentiality, appropriateness, and sufficiency, and shall obtain the concurrence of General Counsel as part of the approval process. They will be assigned DLAD numbers when approved for use, and incorporated into the DLAD by numbered Procurement Letter (PROCLTR).

(c) Requests for substantive changes to existing provisions and clauses shall be signed by the cognizant CCO and forwarded to HQ DLA, ATTN: J-71, for review and approval prior to implementation. CCOs may delegate this authority to a level no lower than the Policy Chief. They shall have been reviewed for legal sufficiency prior to forwarding to HQ. These are provisions and clauses that are not deviations and do not otherwise require approval by DPAP. J-71 shall obtain the concurrence of General Counsel as part of the approval process. These provisions and clauses shall be incorporated into DLAD by numbered PROCLTR.

(d) Requests for minor changes do not require signature by the cognizant CCO or approval by the cognizant Office of Counsel; email requests will be accepted. Such minor changes may include, but are not limited to, changes to addresses, dates, position titles, spelling errors, and typographical mistakes that do not result in any substantive change to policy. These changes may be considered technical edits and may not require approval of General Counsel or incorporation into DLAD by numbered PROCLTR.

(e) DLA clauses codified in the Code of Federal Regulations shall be numbered using the prefix of 54.

1.304 Agency control and compliance procedures.

(4) The plan required by DFARS 201.304(4) is comprised of 1.301-91, 1.403, 1.404, 1.491 and this section.

(5) Requests for the Secretary of Defense, USD(AT&L), and OUSD(AT&L)DPAP approvals required by DFARS 201.304, shall be signed by the cognizant CCO, reviewed for legal sufficiency, and submitted to HQ DLA, ATTN: J-71, for approval and processing through the Director of the DAR Council. J-71 shall obtain the concurrence of General Counsel as part of the approval process. Once the required approvals are obtained, the changes shall be incorporated into DLAD by numbered PROCLTR.

1.390 DLAD.

(a) Contents. This directive and its companion resource, DLAD PGI, contain all enterprise-wide policies and procedures relating to the acquisition of supplies and services within DLA, except those that may otherwise reside in the DLA One Book, other DLA directives, manuals, handbooks, or other similar documents.

(b) Procurement letters. Numbered procurement letters (PROCLTRs) are issued by the Director, Acquisition Management, (J-7) , to provide information and procedural guidance to DLA contracting personnel, to emphasize existing policy, or to transmit new or changed policy promulgated by OSD or higher authority. PROCLTRs shall expire no later than 1 year from date of issue. PROCLTRs can be accessed and downloaded, by year, from the Internet via the CAC enabled J-7 website: http://www.dla.mil/j-3/j-3311/procltrs/procltrspage_2.htm , for distribution to DLA contracting offices and within Headquarters, DLA. The PROCLTR Distribution List is maintained by J-71. See the mandatory DLAD PGI coverage at 1.390(b).

(c) Multiple address letters. Unnumbered multiple address letters will be issued for one-time requests for comments or reports, announcements of procurement conferences and other meetings. No implementation beyond the action requested is contemplated.

SUBPART 1.4 - DEVIATIONS FROM THE FAR

1.403 Individual deviations.

(a) Except for individual deviations to the coverage listed in DFARS 201.402(1)(i), through (vi), and individual deviations granted in accordance with DFARS 201.403(2), deviations from FAR, DFARS, a Department of Defense Directive, or the DLAD which affect only one contract or transaction, may be made only after approval by the Senior Procurement Executive, SPE .

(b) Requests for deviations to the coverage listed in DFARS 201.402(1)(i) through (vi) shall be submitted to HQ DLA, ATTN: J-71, for submission by the SPE, to the DAR Council Director for approval by the Director, Defense Procurement and Acquisition Policy.

1.404 Class deviations.

(a) Requests for class deviations shall be submitted to HQ DLA, ATTN: J-71, for submission to the Director, Acquisition Management, (J-7) , for approval, or to the DAR Council Director for approval by the Director, Defense Procurement and Acquisition Policy.

(b) Requests for class deviations pursuant to DFARS 201.404(b)(i) and (ii)shall be submitted to HQ DLA, ATTN: J-71, for submission to the DAR Council Director for approval by the Director, Defense Procurement and Acquisition Policy, or to the SPE for approval, respectively.

(90) All class deviations for the FAR, DFARS, and DLAD which are required for longer than three years will be incorporated in the DLAD.

1.490 Submission of requests for deviations.

(a) Requests for authority to deviate from the provisions of the FAR or the DFARS shall be submitted to HQ DLA, ATTN: J-71. Submittals shall be formatted in accordance with the guidance at 90.702. Requests for authority to deviate from the provisions of the DLAD shall be submitted in the form of a letter signed by the Supply Chain Head of the Contracting Activity (HCA) (unless delegated to the Chief of the Contract and be in the format of I. Problem, II. Recommendation, and III. Discussion. The deviation request shall include a statement that the request has been reviewed and concurred in by local counsel. Pertinent comments by local counsel should be forwarded with the request.

(i) Requests for new deviations which will be needed beyond the normal three year expiration period should be submitted to HQ DLA, ATTN: J-71, as permanent deviations to be incorporated into the DLAD. The deviation request shall also include appropriate DLAD language.

(ii) Requests for extension of existing deviations should also be requested as permanent DLAD coverage unless superseding regulatory changes are in process.

(b) Requests for class deviations which have a significant cost or administrative impact upon contractors or offerors must be published in the Federal Register. See 1.501-2.

(i) Class deviations for which publication is required should be submitted to J-71 in sufficient time to allow for a 60 day public comment period, resolution of public comments, review of the resolved comments by the DAR Council and approval by the Director, Defense Procurement and Acquisition Policy.

(ii) If a paperwork reduction or regulatory flexibility analysis is required, additional time should be allowed for these analyses.

(c) For those class deviations which have originated in a DLA field activity and do not have significant cost or administrative impact upon contractors or offerors, the originator will initiate action for renewal or extension, when appropriate, at least 90 days prior to the expiration date.

1.491 Control of deviations.

A register shall be maintained by J-71 of the deviations granted to the FAR, DFARS, and DLAD. Each deviation shall be recorded in the register and shall be assigned a control number (i.e., FARS DEV (FAR system deviation) YY-##)). The control number shall be included in the document authorizing the deviation and shall be cited in all references to the deviation.

1.492 - Streamlined Solicitation for Defense Energy Support Center Contracts (DEVIATION)

Defense Energy Support Center (DESC) is authorized to either eliminate or modify various clauses and provisions in buying petroleum, petroleum-related services, and coal. FAR and DFARS clauses/provisions eliminated or modified and DESC clauses which have been modified are listed at 90.13.

1.493 National Performance Review (NPR) Reinvention Laboratory Deviation Authority.

(a) Contracting activities which have been designated as Reinvention Laboratories may grant individual or class deviations to the FAR, DFARS, or DLAD, where necessary to accomplish reinvention laboratory initiatives. This authority may be delegated by the HCA, without power of redelegation, to the chief of the contracting office. The Director, Acquisition Management, (J-7) has delegated this authority to the Commander of the Defense Reutilization and Marketing Service (DRMS) and the Administrator of the Defense National Stockpile Center (DNSC) without power of redelegation.

(b) This deviation authority does not apply to:

(i) Deviations which have a significant effect beyond internal operating procedures or; those which have a significant cost or administrative impact on contractors or offerors (see FAR 1.501).

(ii) Individual deviations at DFARS 201.402(1)(i) which require Director, Defense Procurement and Acquisition Policy approval.

(iii) Requirements imposed by statute or that implement regulations or directives of other agencies.

(c) Reporting Requirement. A report covering all deviations exercised as a result of the Reinvention Laboratories initiative shall be forwarded to J-71 15 days after the end of each calendar quarter. Reports shall contain a brief description of any deviation exercised as a result of this authority including the FAR, DFARS, or DLAD citation, the action or class to which the deviation applies, and the goal which the deviation supports. The Executive Director Acquisition Management , will consolidate and submit to the Director, Defense Procurement and Acquisition Policy a quarterly report with a brief description of all deviations exercised in the last quarter.

SUBPART 1.5 - AGENCY AND PUBLIC PARTICIPATION

1.501 Solicitation of agency and public views.

1.501-2 Opportunity for public comments.

(b)(2) Contracting office comments on proposed rules published for public comment in the Federal Register shall be submitted to HQ DLA, ATTN: J-71. J-71 will take appropriate action on such comments. Actions may include consideration in DAR Council Committee, submission to the DLA DAR Council Policy Member for resolution at the DAR Council, or consolidation of comments and submission directly to the FAR Secretariat or the DAR Council case manager.

(90) J-71 will be the focal point for any Federal Register notices of proposed rules submitted by contracting offices requiring the public comment process. The appropriate contracting office will be responsible for the analysis of public comments and the preparation of a final rule. The final rule will be submitted to J-71 for review and submission through the DAR Council to the Director, Defense Procurement and Acquisition Policy.

1.590 Changes in contracting processes, techniques, or methods.

(a) General. Whenever a contracting office contemplates a significant change in a contracting process, technique, or method which may have a substantial impact on industry and/or the Government, the activity shall promptly notify HQ DLA, ATTN: J-71, of the contemplated change and the reasons for the change. This notification is necessary for HQ DLA to respond to any reactions from industry, the Congress, or the using Military Departments. In addition, HQ DLA has information which may not be available at the field level and can evaluate the significance of the proposed action to the Agency as a whole. Accordingly, it is essential that HQ DLA know what is contemplated before a significant change is publicized.

(b) Examples of significant changes. Examples of contemplated changes which are significant and which require notification to HQ DLA are (but not limited to) a change in--

(1) A longstanding inspection requirement or procedure;

(2) The method of providing and/or accounting for Government-provided property;

(3) A type of contract which constitutes a significant departure from the acquisition technique previously utilized;

(4) Solicitation techniques and the elements used in evaluation of offers;

(5) The region/area from which acquisition of an item has been previously accomplished;

(6) The location of a contracting office; or

(7) Item specification which prompts a major change in manufacturing and/or processing techniques.

(c) Data to support request. To determine the impact of a contemplated change in contracting method, requests for approval of a proposed change in a contracting method should contain the following information:

(1) A description of the present and proposed contracting methods;

(2) A statement of the difficulties encountered in the use of the present method and/or the improvements foreseen as the result of a change;

(3) A statement as to the degree of impact of the change expected on industry and/or the Government; and

(4) A statement as to the net benefits accruing to the Government as a result of the change.

SUBPART 1.6 - CONTRACTING AUTHORITY AND RESPONSIBILITIES

1.601 General.

Authority conferred upon the heads of contracting activities (HCA) or the chief of the contracting office (CCO) under any paragraph of DLAD may be delegated with power of redelegation to other officials, except when specifically limited by law or the provisions of the pertinent DLAD paragraph. The chief of the contracting office will maintain a list of all delegations and promptly notify HQ, DLA, ATTN: J-71, of any changes. Commanders/Directors may serve as the Acting Supply Chain HCA when the Supply Chain HCA is unavailable. Deputy Commanders/Directors may also serve as the Acting Supply Chain HCA when the Commander/Director and Supply Chain HCA are both unavailable, by signing as “Acting Commander/Director”. Supply Chain HCAs exist in the Defense Supply Centers Columbus, Philadelphia, Richmond, and in the Defense Energy Support Center.

1.601-90 90 Critical Acquisition Responsibilities

(a) For those supply chains designated as contracting activities (see DFARS 202.101, definition of “contracting activity”), the functions in (b) below are to be performed by the HCA, with further delegation of one or more of the functions in (b) below authorized to no lower than the CCO, at the Supply Chain HCA’s discretion. For those DLA organizations with J-7 serving as the HCA, (see 2.101, definition of “contracting activity”), the functions in (b) below (with the exception of (b)(2)) are delegated to the CCO:

(b) Responsibilities. The HCA is responsible for maintaining oversight of the activity’s procurement function and ensuring the fundamental integrity of the activity’s procurement system. Key functions are to:

(1) Have responsibility for the contract policy, pricing, and clearance and oversight functions.

(2) Serve as the Defense Supply/Support Center’s clearance authority (see 1.690-3(a)).

(3) Ensure adequate oversight of simplified acquisitions via monthly reviews

and internal Procurement Management Reviews (PMRs)

(4) Ensure that a review and approval channel consisting of DAWIA certified or certifiable 1102s or 1101s in the contracting career path, matrixed if necessary, is in place to provide review and approval of contracting actions specified by regulation. This review and approval channel shall also assist in the resolution of complex contracting issues that are elevated by contracting officers.

(5) Select, appoint, and terminate the appointment of contracting officers when such authority has been delegated to the chief of the contracting office in accordance with 1.603-1.

(6) Manage the activity’s Contracting Officer Warrant Program (see 1.603-1(91)). The objective of this program is to ensure that only those officials who fully meet appropriate selection criteria are appointed and retained as contracting officers when an organizational need occurs.

(7) Manage the activity’s Contracting Officer Review Program (see 1.603-92).

(8) Ensure compliance with the requirements for evaluations of contracting officers and others in the contracting career field as specified in DLAD 1.603.93.

(9) Ensure that contracting personnel, including those in developmental programs, obtain the mandatory training, education, and experience required by DoD Directive 5000.52 to become certified at the appropriate levels as specified in DoD Instruction 5000.66.

(10) Assure that Defense Acquisition University (DAU) course quotas are requested in sufficient numbers to meet training requirements and that these quotas are used or returned in time for the Army Training Requirements and Resources System (ATRRS) to reallocate the spaces.

(11) Ensure that contracting personnel, including Supply Chain DLR Detachment employees, complete required Contract Administration and Contracting Officer Representative (COR) training as specified below and Mandatory PGI 1.601-90(b)(8) and Mandatory PGI 1.602-2-91(a). All contracting personnel assigned to contract administration positions shall complete approved contract administration training within one year of April 2009. All contracting personnel in other than contract administration positions shall complete approved contract administration training within two years of April 2009. Contracting personnel who completed Contract Administration classroom training or CON 112 (DAU) within the past two years (between March 2007 and April 2009) are considered to have met the initial training requirement and do not need to repeat initial training. These personnel only need to complete refresher training within two years of their initial training, and every two years thereafter. Newly assigned contract administration personnel shall complete approved contract administration training within one year of assignment, other newly assigned contracting personnel shall complete approved contract administration within two years. All contracting personnel (regardless of position) shall subsequently complete approved contract administration training every two years. See Mandatory PGI 1.601-90(b)(8) for required training. Responsibility for monitoring compliance with training requirements may be delegated to the CCO.

(12) Ensure that all DLA field activities develop a method to track Continuous Learning Points (CLPs) for contracting personnel. Local training coordinators are responsible for monitoring compliance with Contract Administration training requirements.

(13) Ensure that critical acquisition positions (CAPs) (as designated by the Component Acquisition Executive (CAE)) are filled only by Acquisition Corps members.

(14) Ensure that requests for waiver of CAP requirements are processed through the HCA to the CAE in accordance with DoD Instruction 5000.66, which specifies when the requirement may be waived.

(15) Provide opportunities for both civilian and military members of the AT&L workforce to acquire the education, training, and experience necessary to qualify for senior positions, as required in DoD Instruction 5000.66.

(16) Implement a Contract Quality Management Plan that describes how integrity is preserved within the contracting function (see 1.601-91).

1.601-91 Contract Quality Management Plan.

(a) Each HCA shall be responsible for a Contract Quality Management Plan (CQMP). J-73 has developed and maintains the CQMP for the Aviation, Land, Maritime, and Construction & Equipment Supply Chains. The purpose of the plan is to assure that each HCA has in place an effective management control plan for assuring contracting system controls and integrity and for continuous improvement of contract quality in all phases of the procurement process. The CCO (see 1.601-90) shall develop the plan for and on behalf of the HCA.

(b) The CQMP shall address the following elements:

(1) A description of the procedures in place assuring that the CSPO has been assigned responsibility for the contract policy, pricing, and clearance and oversight functions (see 1.601-90(b)(1)).

(2) A description of how continuous contract quality improvement will be achieved utilizing the eight contract clearance standards at 1.690-4.

(3) A description of the contracting review and approval channel within the activity. This review and approval channel shall consist of DAWIA certified or certifiable GS-1102s or 1101s in the contracting career path.

(4) A description of the activity’s Contracting Officer Warrant Program (see 1.603-1(91)).

(5) A description of the activity’s Contracting Officer Review Program (see 1.603-91).

(6) How the contracting activity complies with the requirements for evaluations of contracting officers and others in the contracting career field as specified in DLAD 1.603.94[3].

(7) A description of how the CCO ensures that activity contracting personnel, including those in a developmental program, attend mandatory DAWIA training courses and that they obtain the required education and experience.

(8) A description of how the activity’s DAWIA certification process is managed.

(9) A description of how the activity’s critical acquisition positions are determined and the procedures for processing a waiver request.

(10) A description of how the activity’s program for developing a pool of talent for filling multi-functional supervisory vacancies is managed (see AQP/MMS letter dated July 14, 1994, subject: Supervisory Development Programs in Commodity Business Units, Commodity Management Groups, and Like Organizations).

(c) The CQMP and substantial revisions thereto shall be submitted by the HCA for approval by the Director, Acquisition Management, (J-7) . The plan shall be kept current.

1.602 Contracting officers.

1.602-1 Authority.

(a) Each appointing authority shall prepare and maintain a current listing of all of the activity’s contracting officers and the limits of their authority. This list shall also include the name and location of any contracting officer assigned to an activity but physically located at other than the central activity. The listing shall be in the sample format at (b) below. A copy of this listing will be provided to HQ DLA, ATTN: J-73, annually at the beginning of each fiscal year.

(b) Sample format for listing of contracting officers:

_____________________________________________________________________

DATE OF

CURRENT DOLLAR CANDIDATE MEETS INTERIM

NAME GRADE WARRANT LEVEL SELECTION CRITERIA APPOINTMENT

(Yes or No) (Yes or No)

_____________________________________________________________________

(c) Contracting officer warrants lists shall be reviewed by J-7313. The review will include the following considerations: a contracting office's needs for the number and dollar values of warrants relative to the office's size and mission; whether warrants should be limited or unlimited; whether warrants are rescinded when appropriate; whether contracting officers meet the FAR/DFARS/DLAD selection criteria; the number and duration of waivers to selection criteria; and whether a periodic review of contracting officers warrants by the contracting office has been accomplished.

1.602-2 Responsibilities.

(90) Contracting officers shall be bound in all their actions to exercise reasonable care, skill, and judgment.

(91) Selection, appointment, evaluation, and termination of appointment of contracting officers' representatives, and contracting officers' technical representatives.

(a) Designation and training. The selection, appointment, evaluation, and termination of appointment of contracting officers' representatives (CORs) and contracting officers' technical representatives (COTRs) shall be made by the contracting officer. Initial COR appointments shall be made prior to contract award. Such appointments shall take into consideration the ability, training, and experience of COR/COTR designees and shall assure that designees are appropriately qualified to act as authorized representatives of the contracting officer. The individual’s program management skills should also be considered when nominating and appointing a COR or COTR. All CORs/COTRs shall complete approved training prior to being issued a letter of appointment. See Mandatory PGI 1.602-2-91(a) for required training.

The COR/COTR designations shall be in writing and shall define the scope and limitations of the authorized representative's authority. Appointment shall be made by letter substantially in the form set forth in (d) below. Unless the appointment of a COR/COTR contains other provisions for automatic termination, the appointment shall be effective, unless sooner revoked, until the COR/COTR is reassigned or the individual's employment is terminated. Revocation of a COR/COTR appointment may be effected at any time by the appointing authority, or higher authority, or any successor to either. Revocation shall be made by letter substantially as shown in (e) below.

(b) Authority. CORs/COTRs shall maintain compliance with DoD Directive 5500.7-R, Joint Ethics Regulation. Specific guidance for CORs/COTRs is provided in Subpart 90.6. Guidance concerning contracting officer's representatives for provisioning is addressed at 17.7690.

(c) Evaluation and Documentation. For details see Mandatory PGI 1.602-2(c).

(d) Sample letter of appointment. For details see Mandatory PGI 1.602-2(d).

(e) Sample letter for terminating appointment. For details see Mandatory PGI 1.602-2(e).

1.602-3 Ratification of unauthorized commitments.

(b) Policy.

(2) Proposed ratification of unauthorized commitments valued in excess of the simplified acquisition threshold at FAR 2.101 from those activities in paragraphs 1.602-3(b)(2)(A) through (F) of this Subsection shall be forwarded by letter signed by the Commander, Director, or the Administrator, to HQ DLA, ATTN: J-71. Such referrals shall clearly document: (A) that the authority of FAR 1.602-3 exists and that ratification is within the limitations of FAR 1.602-3(c); (B) the circumstances surrounding the unauthorized commitment; and (C), as appropriate, a description of the corrective action taken to preclude such unauthorized commitments in the future.

(3) Heads of contracting activities may delegate their ratification authority (FAR 1.602-3(b)(2)) for unauthorized commitments valued at or below the simplified acquisition threshold at FAR 2.101 to the Chief of the Contracting Office. The authority to ratify unauthorized commitments in excess of the simplified acquisition threshold may not be delegated. The Director, Acquisition Management, (J-7), has delegated the authority to ratify unauthorized commitments valued at or below the simplified acquisition threshold at FAR 2.101 to the Commander/Director of the activities listed in 1.602-3(b)(3)(A) through (D) of this Subsection, without power of redelegation:

(A) Defense Distribution Center (DDC).

(B) Defense Reutilization and Marketing Service (DRMS).

(C) Defense Media Activity (DMA)

(D) Document Automation and Production Service (DAPS)

.

1.602-90 Nonappropriated funds.

Appropriated fund contracting officers may act in an advisory capacity on nonappropriated fund contractual instruments. Appropriated fund contracting officers, however, shall not perform the duties of a contracting officer on any contractual instrument obligating only nonappropriated funds except when required by AR 215-4, Nonappropriated Fund Contracting. Contracting officers shall be separately warranted for contracting with nonappropriated funds.

1.603 Selection, appointment, and termination of appointment.

1.603-1 General.

The authority in FAR 1.603-1 for selection, appointment, and termination of appointment of contracting officers has been delegated by the Director, DLA to the DLA Heads of Contracting Activities (HCAs). For the activities not designated as contracting activities (see DLAD 2.101), the Director, Acquisition Management, (J-7) , as HCA, has delegated this authority, to the /Director of those activities. This authority is delegable, without power of redelegation to the chief of the contracting office. For DCSO and DNSC, the delegation is to the chief of the contracting office without power of redelegation.

(90) Definitions.

"Appointing Authority" means any person delegated the authority to appoint contracting officers in accordance with 1.603-1 above.

"Warrant Limitations" are limitations, in addition to the DLAD, laws, Executive Orders, and other applicable regulations, which are imposed on the authority of contracting officers either by delegation or actions of the appointment authority. These limitations may include, but are not limited to, dollar obligation ceilings, interim appointment period, requirements for prior reviews by higher authority, or other approval requirements.

(91) The DLA Contracting Officer Warrant Program.

(a) As prescribed in FAR 1.603-1, DLA has established the DLA Contracting Officer Warrant Program for the selection, appointment, and termination of contracting officer warrants.

(b) The objective of this program is to ensure that only those officials who fully meet appropriate selection criteria are appointed and retained as contracting officers when an organizational need occurs. Contracting officers must demonstrate that they possess the required knowledge of contracting officer authority and responsibility, the role of a contracting officer, activity/agency contracting procedures, decision making skills, and expected standards of conduct/ethical behavior.

(c) Contracting officer appointments shall be based on an organizational need (see 1.603-3(a)(1) below).

1.603-2 Selection.

(90) Selection criteria for contracting officer appointments are listed in DFARS 201.603-2. Education and training requirements for warrants above the simplified acquisition threshold are also set forth in DoD Instruction 5000.66, Operation of the Defense Acquisition, Technology, and Logistics Workforce Education, Training, and Career Development Program, dated December 21, 2005. There are no specific education or training requirements for contracting officers, other than those pertaining to the candidate’s series and grade level, for warrants for simplified acquisitions above the micro-purchase threshold but under the simplified acquisition threshold..

(a) Experience requirements and selection procedures:

(1) Candidates for simplified acquisition contracting officer warrants above the micro-purchase threshold shall have two years of recent experience in Government or commercial contracting, including 6 months experience applicable to the dollar threshold or nature of procurement actions for which the warrant will be issued.

(2) For Contracting Officer Warrants above the simplified acquisition threshold, candidates shall meet the following additional experience requirements:

(i) Warrants for up to a maximum of $500,000: Three years of recent, progressively complex and responsible contracting and/or staff experience in Government or commercial contracting.

(ii) Warrants which exceed $500,000: Four years of recent, progressively complex and responsible contracting and/or staff experience in Government or commercial contracting.

(3) Field buyers and Defense Subsistence Office Personnel placing calls against Blanket Purchase Agreements for fresh fruits and vegetables may be exempt from the above requirements. Appointing authorities may establish specialized selection criteria as appropriate for these two categories of warranted personnel.

(4) At the request of the supervisor, the candidate will prepare a Contracting Officer Warrant Program Selection Statement using the following format:

SAMPLE CONTRACTING OFFICER WARRANT PROGRAM SELECTION STATEMENT.

This format should be used by each contracting officer candidate when applying for a contracting officer's warrant:

1. NAME

2. TITLE, SERIES, GRADE

3. OFFICE

4. RELEVANT EXPERIENCE (Begin with current position and go back for a minimum of two years. Include up to four relevant positions.) Information on each position should include:

A. NAME OF EMPLOYER

B. DATES EMPLOYED

C. TITLE OF POSITION

D. KIND OF BUSINESS/ORGANIZATION

E. DESCRIPTION OF WORK (Include quantity, complexity, type, and average dollar amount of documents obligated, if applicable.)

5. OTHER RELEVANT SPECIAL QUALIFICATIONS, CERTIFICATIONS, OR SKILLS

6. RELEVANT HONORS, AWARDS OR FELLOWSHIPS RECEIVED

7. EDUCATION:

A. HIGHEST LEVEL COMPLETED

DIPLOMA RECEIVED: ( )YES ( )NO

B. NAME OF COLLEGE/UNIVERSITY

(1) DATES ATTENDED

(2) NUMBER OF CREDITS COMPLETED (Indicate whether credits are

semester or quarter hours.)

(3) TYPE AND YEAR OF DEGREE

(4) CHIEF UNDERGRADUATE COLLEGE SUBJECTS

(5) MAJOR FIELD OF STUDY AT HIGHEST LEVEL OF COLLEGE WORK

8. CONTRACTING RELATED TRAINING (See 1.603-2 for training requirements):

NAME OF COURSE NAME OF DATE

ATTENDED SCHOOL

(5) The supervisor will review this statement to determine the candidate's ability to perform the functions required to meet the

organizational need.

1.603-3 Appointment.

(a) Request for Appointment.

(1) The supervisor will complete a Request for Appointment of a Contracting Officer (such as the sample below), justifying the validity of the organizational need (such as surge in workload, retirement or termination of other personnel, etc.) and verifying the contracting officer candidate's compliance with selection criteria. The supervisor will sign the request and submit it through appropriate organizational channels to the appointing authority.

SAMPLE REQUEST FOR APPOINTMENT OF A CONTRACTING OFFICER.

The following findings and determinations are made pursuant to applicable law and regulation.

1. There is a clear and convincing need to appoint a contracting officer with the ability to perform at the __________ ( dollar threshold) warrant level for the following reasons: (Include discussion of quantity, complexity, type, and average dollar amount of documents to be obligated).

2. Request the following contracting officer candidate be appointed a warrant with the above dollar limitation: (Name, Title, Series and Grade).

3. The contracting officer candidate will occupy the following organizational level: (Office/Branch/Division).

4. The candidate's Contracting Officer Warrant Program Selection Statement stating the candidate's background is enclosed. For the limits set forth above: (Check as applicable.)

_____ The candidate meets the selection criteria.

_____ This candidate does not meet the minimum criteria in (experience, education and/or training), namely; (Indicate deficiency)____________________________________________________

_____ An interim appointment for the period of _______________is requested because_______________________________________________________

(Include rationale/justification needed to issue warrant despite failure to meet qualification criteria.) These experience and/or training needs will be identified in the candidate's individual development plan and must be completed by_____________________________.

5. In addition to the limitations imposed by the Defense Logistics Acquisition Directive, the DoD FAR Supplement, the FAR, laws, Executive Orders, and other applicable regulations, the following additional warrant limitations are imposed:

Dollar threshold:______________________________________________

Other limitations:_____________________________________________

6. The candidate's current conflict of interest disclosure statement, OGE Form 450, “Executive Branch Confidential Financial Disclosure Report”, as required by DLAD 5500.1, Standards of Conduct, is on file with the appropriate standards of conduct counselor. The above findings and determinations are made pursuant to applicable law and regulations:

SUPERVISOR:

.....................................................................

(Signature of Supervisor of the Candidate/Date)

(Typed Name, Title, Office)

APPROVED: ...........................................................

(Appointing Authority/Date)

(Typed Name, Title, Office)

(2) The appointing authority will review candidate applications and appoint Contracting Officers. If additional information is required by the appointing authority, the document will be returned with a request for further explanation or supporting data. The appointing authority shall determine the validity of the need, whether the candidate meets applicable selection criteria, and what warrant limitations should be applied. In the event that the appointing authority determines that there is not an organizational need for a contracting officer, the candidate will be notified of this decision.

(3) The appointing authority may have the candidate appear before a Contracting Officer Review Board as described in 1.603-92(b).

(4) The completed Request for Appointment of a Contracting Officer is subject to the Privacy Act of 1976 and shall be maintained in a secure location deemed appropriate by the appointing authority.

(5) Personnel shall not ordinarily be appointed as contracting officers if they do not meet the applicable selection criteria (see DFARS 201.603-2). If a candidate does not meet the selection criteria, an interim appointment may be granted. The appointing authority shall consider experience and past performance when making an interim appointment. Interim appointments shall normally be limited to dollar obligations at or below the simplified acquisition threshold in FAR Part 13. The appointing authority will require that all training or experience requirements will be met within 18 months. Failure to successfully fulfill the training requirements within that timeframe will result in loss of the warrant or issuance of another interim warrant, whichever is deemed necessary. If no appointment is granted, the candidate will be provided with a written explanation of the reasons.

(6) Appointments will be documented and copies filed as prescribed at FAR 1.603-3. Each SF 1402, Certificate of Appointment, shall be serially numbered by each DLA appointing authority. The SF 1402 will contain any warrant limitations, including limitations on the period of appointment. The original Certificate of Appointment shall be provided to the appointed contracting officer and retained at the contracting officer's duty station.

(7) Changes, such as increasing or decreasing the warrant limitations of a contracting officer, transfers, name changes, or changes in rank or grade, shall be made solely at the discretion of the appointing authority. When an appointing authority determines to make such changes, a new Certificate of Appointment shall be issued based upon an updated selection statement and request for appointment.

(8) Contracting officer warrants are effective until terminated in writing. Termination of a warrant may effected by the appointing authority or higher authority when determined necessary.

(b) Pursuant to DFARS 201.603-3(b), Heads of Contracting Activities, or their authorized designees, acting in their capacity as purchase card authorizing officials as delineated in DLAI DLA Government Purchase Card Program One Book Chapter, may authorize cardholders to use the purchase card in accordance with the criteria at DFARS 213.301. Cardholder appointment letters shall reflect the appropriate single purchase limit threshold.

1.603-90 Ordering Officers.

(a) Contracting Officers, by virtue of their warrant, are authorized to designate qualified individuals as ordering officers. Such designations must be in writing. Limitations on the authority of the ordering officer shall be stated in the contract or in the letter of appointment. Ordering officers may place orders under contracts such as indefinite delivery contracts or Federal Supply Schedules and calls under blanket purchase agreements. Contracting officers shall assure that ordering officers are familiar with DoD contract reporting requirements and shall comply with the DoD contract reporting requirements for such actions.

(b) Solicitation provisions/Contract clauses

Use 52.201-9001, Ordering Officers Under the Contract, in indefinite delivery contracts when ordering officers will be used to place the delivery orders and/or the Contracting Officer wants to identify the ordering officers in the clause.

1.603-91 Micro-purchase contracting authority.

(a) Individuals authorized to make micro-purchases shall be so designated, in writing, and, except for individuals authorized to only make such purchases with the government commercial purchase card, are required to complete the Defense Small Purchase Course.

(b) Issuance of a government-wide commercial purchase card constitutes authority to make micro-purchases (see FAR 1.603-3(b)). This procurement authority is issued under the procedures of the DLA Credit Card Instruction, DLAI DLA Government Purchase Card Program One Book Chapter and is not subject to the limitation on delegation of authority for selection, appointment, or termination at 1.603-1 or the contracting officer review program at 1.603-92.

1.603-92 Contracting Officer Review Program.

(a) Each appointing authority will establish a Contracting Officer Warrant Review Program consisting of the following:

(1) An annual assessment of the organizational need for Contracting Officer appointments.

(i) The annual review will include the following considerations: a contracting office's needs for the number and dollar values of warrants relative to the office's size and mission; whether warrants should be limited or unlimited; whether warrants are rescinded when appropriate; whether contracting officers meet the FAR/DFARS/DLAD selection criteria; the number and duration of waivers to selection criteria; and whether a periodic review of contracting officers warrants by the contracting office has been accomplished. The results of the annual review shall be documented in a report and approved by the Chief of the Contracting Office.

(2) Appointment of a Contracting Officer Review Board to accomplish the following:

(i) Review and approve initial Contracting Officer appointment procedures.

(ii) Once every three years conduct reviews of each Contracting Officer appointment as described below:

(A) An evaluation of the contracting officer's work products to include a cumulative assessment of the results of preaward and postaward reviews of contract actions by the activity contract review personnel.

(B) An examination of the contracting officer's Individual Development Plan to include completion of mandatory training courses for the level of warrant held, on-the-job training, and required college degree or 24 semester hours of business related study, unless exempted based upon criteria set forth in DFARS 201.603-2(2).

(C) A review of the contracting officer's professional competency which may include an appearance before the Contracting Officer Review Board to demonstrate that the contracting officer possesses the required knowledge of contracting officer authority and responsibility, the role of a contracting officer, activity/agency contracting procedures, decision making skills, and ethics.

(iii) Place written documentation of the results of the triannual review in the contracting officer's appointment file.

(b) The Contracting Officer Review Board will be composed of PLFA contracting personnel who have held contracting officer warrants from the following offices (or equivalent): Director or Deputy Director of Contracting, Plans, Policy and Systems Office, Business Review Office, and a senior contracting officer from a contracting team. Board results will be recorded and placed in the appointment file.

1.603-93 – Requirements for evaluations of contracting officers and others in the contracting career field - In accordance with Department of Defense Instruction (DoDI) 5000.66 “Operation of the Defense Acquisition, Technology, and Logistics Workforce Education, Training, and Career Development Program,” December 21, 2005 --

(a) The first level performance evaluations of contracting officers shall be performed by individuals in the contracting career chain (GS-1102s and GS 1101s) who are certified in the Defense Acquisition Workforce Improvement Act (DAWIA) Contracting Career Field at a level no lower than that of the individual being evaluated. The only exception is the Chief of the Contracting Office whose first level performance evaluation shall be performed by the contracting activity Commander/Director/Administrator. for those contracting activities without a Supply Chain HCA.

(b) If personnel in the contracting career field are not contracting officers, they shall have an opportunity for review of their performance appraisals by an individual in the contracting career field who is DAWIA certified in Contracting at a level no lower than the individual being evaluated. ( For recommended guidance see PGI 1.603 )

1.690 Contract clearance and oversight process.

1.690-1 General.

(a) Scope and applicability. The requirements of this section apply to the Defense Supply Centers and contracting offices listed in DFARS 202.1 and 2.101 of this directive.

1.690-2 Policy.

(a) The Executive Director, Acquisition Management, J-7 establishes and maintains the contracting clearance and oversight process as a system of internal controls and as a basis for certification of the procurement system required by Executive Order 12931.

(1) Heads of contracting activities are to provide an effective management system that assures the procurement system provides goods and services with reasonable prices, timely delivery, and required quality and that it meets the statutory, regulatory, and program needs of the Agency. A contract clearance and oversight process shall be instituted which provides oversight to monitor all phases of the procurement system. The clearance and oversight process is to ensure an effective program for monitoring, evaluating, documenting, and improving the quality of the procurement system's performance. Clearance procedures are to provide for contracting supervisory review of negotiated procurements as well as independent reviews. Contracts are to be reviewed at a level appropriate to their complexity, risk, priority, and dollar value. The clearance and oversight process will embrace five key concepts: strengthening PCO ownership of the procurement process, placing accountability and responsibility at the appropriate level, enhancing professional development, streamlining the review and approval process, and focusing on process improvements.

(2) The Contract Clearance and Oversight Office (formerly the Contract Review Office) at the Defense Supply Centers (see 2.101), organized in conformance with DLA One Book, Procurement Process – Contract Clearance and Oversight, paragraph 3.2 (formerly shown at DLAM 5810.1), is the guidance for contracting oversight. Review criteria are established by the chief of the contracting office. The establishment and/or subsequent revision of review criteria will be coordinated with the Director, Acquisition Management, (J-7) , prior to incorporation in local regulations. At all other DLA activities, the chief of the contracting office will be the focal point for oversight. For those activities with no review office, a contract review board process will be employed to review selected acquisitions.

(3) Contracting officers shall review every proposed contract (FAR 2.101) and supporting file before signing the contract and before forwarding the file for review by higher authority, if required. Documentation shall be in sufficient detail to permit reconstruction of all significant actions by a reviewer without referral to the individuals who effected the acquisition. The contracting officer is responsible for the quality of the contracting arrangement.

(b) High-visibility (Hi-Viz) acquisition surveillance is a component of the overall DLA acquisition management strategy. It is intended to ensure that acquisitions that represent the highest risk to the Agency in terms of factors such as mission criticality, financial investment, and stewardship responsibilities receive oversight at an appropriate management level. To that end, Hi Viz surveillance will be conducted and reported for acquisitions, as prescribed below.

(1) The following acquisitions will be tracked by the DLA J-7 Acquisition Operations Division (J-72) and reported on a weekly basis to the DLA Director:

(i) Acquisitions designated by the Director, DLA, the Vice Director, DLA, or the Director, Acquisition Management (J-7); these may be recommended by DLA Headquarters or buying activity headquarters senior staff. Buying activities should nominate acquisitions that are known to represent a high level of risk to the Agency.

(2) The following acquisitions will be tracked by J-72 and reported on a weekly basis to the Senior Procurement Executive (SPE):

(i) Acquisitions designated by the SPE; these may be recommended by DLA Headquarters or buying activity headquarters senior staff . Buying activities should nominate acquisitions that are known to represent a high level of risk to the Agency.

(ii) Acquisitions that would otherwise be reported at the buying activity headquarters level that are processed by the DLA Contracting Services Office will be reported to the SPE.

(3) The following acquisitions will be tracked and reported at the buying activity headquarters level:

(i) Acquisitions designated by the buying activity Commander/Director or senior staff.

(ii) Any other acquisitions not designated for higher-level reporting that have been reviewed or will be reviewed by the Agency’s Integrated Acquisition Review Board (I-ARB).

(4) The acquisitions designated in this PROCLTR must be reviewed at the level specified, but buying activities may designate subordinate levels of review for other acquisitions.

(5) Acquisitions designated for review by the DLA Director or the SPE will be reported by the buying activities to J-72 on a weekly basis at a time specified by J-72 using a J-72 prescribed format, which will be separately furnished and is subject to change. Reporting to the Director, DLA, will be accomplished either by briefing and/or report, as required. Acquisitions monitored at the buying activity level may be reported in any appropriate format. However, buying activities will be required to provide updates to the DLA Director on their Hi-Viz surveillance programs in a prescribed format on a quarterly basis, or as otherwise specified by the Director.

(6) As part of the Hi-Viz surveillance program, the buying activities will establish and maintain policies that provide for regularly-scheduled post award in-process reviews of their Hi-Viz acquisitions. Such reviews will require the participation of the contractor. At a minimum, these reviews will be conducted for each acquisition reported at the DLA Director level; these reviews will be conducted at the buying activity Commander/Director or Head of the Contracting Activity level. In-process reviews of other Hi-Viz acquisitions may be conducted at subordinate levels.

(7) Acquisitions reported to the DLA Director may only be removed from Hi-Viz surveillance with the permission of the Director. Senior leaders at buying activities may make requests for removal from Hi-Viz surveillance to the Director with copy to J-7 or may submit requests with appropriate justification through J-7. Acquisitions monitored by the SPE may only be removed from Hi-Viz surveillance with the permission of the SPE, which may be obtained by direct request or may be requested through J-72. Acquisitions monitored at the buying activity level may be removed from Hi-Viz surveillance at the discretion of the buying activities, with the exception that items subject to approval by the Agency I-ARB must be monitored through award, at a minimum.

(8) Correspondence addressing the overall direction of a contract subject to HiViz surveillance, to include correspondence with the contractor, Department of Defense officials, and Members of Congress, must be coordinated with the SPE prior to release.

1.690-3 Establishment of clearance approval authority.

(a) Clearance authority at the Defense Supply/Support Centers is established at the Supply Chain HCA, unless delegated to the chief of the contracting office (see 2.101).

(b) The Division Chief, Procurement Integrity and Pricing, J-73, or delegated individual reserves the right to review and approve any action at any critical stage when called for. Selected acquisitions will be briefed by the contracting officer to Director, Acquisition Management, J-7, and/or Deputy Director, Acquisition Management, J-7, at HQ DLA, as directed. Documentation reviews will be prepared in accordance with 1.690-7.

(c) All proposed solicitations and contracts to be executed under the authority of FAR 6.302-3, (for DSCP, C&T, Medical and Subsistence, only those actions in excess of $10,000,000) and all letter contract definitizations exceeding $650,000 for the Defense Supply Centers (for other contracting offices, see Table 1-1 and 1.690-6(g)), are subject to HQ DLA review and approval pursuant to 1.690-7.

1.690-4 Contract clearance standards. For details see Mandatory PGI 1.690-4.

1.690-5 Types of actions requiring contract clearance.

(a) The chief of the contracting office at each Defense Supply Center (see 2.101) shall establish criteria for the review and approval of the following actions pursuant to 1.690-2:

(1) Other than fixed price;

(2) Other than full and open competition;

(3) Authorizing award of unpriced actions, and/or subsequent definitizations (see 1.690-3(c));

(4) Advisory and assistance services;

(5) Major programs;

(6) Sole bids/offers;

(7) ADP goods and services;

(8) Awards to other than the low price;

(9) High dollar acquisitions;

(10) Simplified acquisitions;

(11) Solicitations;

(12) Negotiated actions;

(13) Options not priced/evaluated at time of award, or exercise of options;

(14) Modifications;

(15) Unilateral price determinations;

(16) Post award reviews.

(b) For activities where the Executive Director, Acquisition Management, (J-7)

exercises the function of head of the contracting activity, see table 1-1 and 1.690-6.

1.690-6 Contracts/actions requiring HQ DLA clearance.

(a) General. For those activities (Table 1-1) for which the Director, Acquisition Management, J-7, is the head of the contracting activity (HCA), the actions listed below require the review and approval of the Director, Acquisition Management, J-7, or other DLA official so delegated. Any action submitted, including those under 1.690-3(b) and (c), shall be submitted in accordance with the instructions shown in 1.690-7. For review purposes, the dollar amount of a contract action shall be either the proposed high objective, maximum estimated, or actual amount of obligation, and shall include the amount of any option whether or not evaluated or exercised at time of award. Actions listed below will be selected pursuant to 1.690-3(b) and (c), and 1.690-7(a).

(b) Presolicitation. Review and approval prior to issuance (see 1.690-7(c)).

(1) Two step sealed bidding;

(2) Contractor versus Government performance (OMB Circular No. A-76, FAR 7.3);

(3) Acquisitions issued under authority of FAR 6.302-3, industrial mobilization; or engineering, developmental or research capability.

(c) Prenegotiation (including sole bids and sole offers) Review and approval is required prior to discussions/negotiations for the following actions: (See 1.690-7(d))

(1) All actions other than firm fixed-price or fixed price with economic price adjustment, if the total dollar amount exceeds that listed in Table 1-1 for the activity concerned.

(2) All actions resulting from an invitation for bids when award is proposed to a sole responsive, responsible bidder, and the total dollar amount exceeds that listed in Table 1-1 for the activity concerned.

(3) All actions, including priced orders issued under basic ordering agreements, resulting in receipt of a sole offer in response to a request for proposals in excess of the amount set forth in Table 1-1 for the activity concerned.

(4) All actions (excluding those covering the set-aside portion of a small business or labor surplus area set-aside) resulting in receipt of more than one offer in response to a request for proposal in excess of the amount set forth in Table 1-1 for the activity concerned.

(5) Each exercise of an option, when the option was not evaluated at time of award of the basic contract, in excess of the amount set forth in Table 1-1 for the activity concerned.

(6) Definitization of letter contracts or other undefinitized contractual actions approved in accordance with subparagraph (g) below.

(7) All contracts negotiated under the Small Business Administration (SBA) pursuant to section 8(a) of the Small Business Act exceeding $1,000,000.,

(d) Preaward. During each fiscal year, each activity listed under Table 1-1 shall notify HQ DLA, J-73 of the first three construction contracts (FAR 36.102) which exceed the amount in Table 1-1 Construction Threshold which require preaward review and approval in accordance with the procedures at 1.690-7(a) and (g).

(e) Pre-award review is also required for all General Services Administration (GSA) delivery and task orders, Blanket Purchase Agreements against GSA schedules, and Governmentwide Acquisition Contracts (GWACs) (such as GSA GWACs and NASA Solutions for EnterpriseWide Procurement (SEWP)) exceeding $1,000,000.

(f) Post-award. All DLA contracts are eligible for a post-award review by HQ DLA in accordance with the procedures at 1.690-7(g). The Chief, Procurement Integrity & Pricing Division (J-73), may identify and request files subject to post-award review.

(g) Exclusions:

(1) Orders placed against requirements contracts of other DOD activities and other Federal agencies, delivery and task orders placed against GSA schedule contracts, Governmentwide Acquisition Contracts (GWACs), valued at less than $1,000,000 and all contracts with the National Industries for the Blind and National Industries for the Severely Handicapped.

(2)Contracts negotiated with Small Business Administration (SBA) pursuant to section 8(a) of the Small Business Act valued at less than $1,000,000.

(3) Orders issued under indefinite delivery contracts or DLA multiple award schedules, where the basic contract was reviewed by HQ DLA, or where the basic contract was awarded under sealed bid procedures and the award was based on adequate price competition.

(4) Repurchases against any contract terminated for default.

(h) Letter contracts/other undefinitized contractual actions. Approval is required prior to award of a letter contract or other undefinitized contractual instrument when the resulting definitive contract is expected to exceed $650,000, or the applicable criteria in Table 1-1 for the activity concerned, whichever is less. After review by the local clearance authority, the letter requesting approval shall be submitted to HQ DLA, ATTN: J-73. A copy of any modification issued for an action previously approved in accordance with this subparagraph shall be forwarded to HQ DLA, ATTN: J-73, when the modification affects the:

(1) Unit price or total price ceiling for the definitized action;

(2) Limit of the Government's liability;

(3) Definitization date; or

(4) Progress or provisional payments, as initially proposed. See 16.603-90 regarding procedural requirements for approval to award a letter contract or unpriced basic ordering agreement (BOA) order, respectively.

1.690-7 For details see Mandatory PGI 1.690-7.

1.690-8 Waiver of HQ DLA Review. For details see Mandatory PGI 1.690-8.

TABLE 1-1

Contract Review Thresholds

Amounts set forth below are the thresholds for the Contracting offices listed under the applicable subparagraphs of DLAD 1.690-6.

Contracting: DDC DRMS DNSC DAPS DMA DSCO

Offices

Sole Bid: $5,000,000 $100,000 $100,000 $100,000 $1,000,000 $5,000,000

Sole Offer: $5,000,000 $500,000 $500,000 $100,000 $1,000,000 $10,000,000

All Other

Negotiated $5,000,000 $5,000,000 $1,000,000 $100,000 $1,000,000 $20,000,000

Fixed Price

Or Fixed Price

With EPA

Options: $5,000,000 $5,000,000 $1,000,000 $100,000 $1,000,000 $20,000,000

Construction: $1,000,000 $300,000 $300,000 $100,000 $1,000,000 $1,000,000

Letter Contract $650,000 $650,000 $650,000 $650,000 $650,000 $650,000

Other Undefinitized

Contract Actions $650,000 $650,000 $650,000 $650,000 $650,000 $650,000

Contract Type $5,000,000 $5,000,000 $1,000,000 $100,000 $1,000,000 $5,000,000

Other Than Fixed

Price or Fixed

Price with EPA

And Hybrid

SBA 8(a) $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000

GSA Delivery $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000

And Task orders,

FSS Orders,

and GWACs

1.691 Legal review.

(a) Legal advice and assistance of assigned legal counsel shall be obtained: in the preparation of clauses other than standard clauses which are to be contained in solicitations; prior to taking action to resolve any instance of defective cost or pricing data or false claim reported by the General Accounting Office (GAO), Department of Defense, Inspector General (DoD IG), or Defense Contract Audit Agency (DCAA); and on any questionable legal areas in the preparation and/or execution of contractual documents.

(b) Defense Supply Centers shall issue instructions on the legal review of solicitations and contractual documents issued by their activities.

(c) C ontracting offices not designated as a contracting activity listed at 2.101 shall ensure that legal review is accomplished on all solicitations and contractual documents in excess of $100,000.

1.692 Confirmation of quantity and technical requirements.

(a) Prior to solicitation of repetitively single/sole source purchases in excess of $100,000, the contracting officer shall consider requesting review of all technical data by the responsible Specification Preparing Activity/Engineering Support Activity. Such a review should be requested if the contracting officer believes it is necessary in order to assure that the data is current, potential sources are identified, and lengthy, complex, or expensive testing requirements are eliminated to the extent practicable (i.e., qualified products list (QPL), First Article requirements). The contracting officer shall also ensure that consideration has been given to other actions that may encourage competition, i.e., Government furnished tooling, alternate contract type, provisions for economical production quantities.

(b) Immediately prior to the award of any supply contract (other than an indefinite delivery contract) in excess of $500,000 or for mobilization requirements, the contracting officer shall confirm that the quantities are still required and that the technical requirements are still current. "Immediately prior to award" means that point in time when all required approvals have been obtained and the contract is ready for release to the contractor. Confirmation of quantity and technical requirements for Military Interdepartmental Purchase Requests (MIPRs) shall be obtained verbally from the MIPR Liaison/Coordinator or item manager levels of the requiring departments. Appropriate documentation shall be included in the contract file. Contracting offices are encouraged to establish similar procedures for significant awards below $500,000 as may be appropriate for their types of contract actions.

SUBPART 1.7 - DETERMINATIONS AND FINDINGS

1.703 Class determinations and findings.

(b) Class determinations and findings (CDF) may not be extended beyond their effective periods. When a CDF is required for an additional period, a new CDF shall be executed. New requests shall set forth a summary of the acquisitions completed under the earlier CDF, as well as acquisitions contemplated under the new request.

(c) Heads of contracting activities shall periodically review effective CDFs to assure that they are still needed.

1.704 Content.

(g)(90) The printed name and title of the official authorized to sign the D&F shall be included with the signature and the date signed.

SUBPART 1.9 - ADMINISTRATION OF DLAD

1.900 Administration and explanation.

The administration and explanation of the DLAD is the responsibility of the Director, Acquisition Management, (J-7)