# DLAD PART 7

- 7.000 Scope of Part.

- SUBPART 7.1 - ACQUISITION PLANS

- 7.102 Policy.
- 7.102 (96) The acquisition plan shall identify any proposed use of Time and Material (T&M) or Labor Hour (LH) clins, contracts, or task orders and address the requirements found in 90.1101, 90.1102 and 90.1103 concerning T&M and LH. Note also the monitoring and reporting requirement found in 16.601 (90).
- 7.103 Agency-head responsibilities.
- 7.104 General procedures.

- 7.104-90 Integrated Acquisition Review Board (I-ARB)
- 7.104-91 Advance Acquisition Planning Template.

- 7.105 Contents of written acquisition plans. See 90.1101.
- 7.107 Additional requirements for acquisitions involving bundling.
- 7.170 Consolidation of contract requirements.

- 7.170-2 Definitions.
- 7.170-3 Policy and procedures.

- SUBPART 7.2 –PLANNING FOR THE PURCHASE OF SUPPLIES IN ECONOMIC QUANTITIES

- 7.202 Policy.
- 7.203 Solicitation provision.

- SUBPART 7.3 - CONTRACTOR VERSUS GOVERNMENT PERFORMANCE

- 7.304 Procedures.
- 7.306 Evaluation.

- SUBPART 7.90 – USE OF NON-DOD CONTRACTS

- 7.9001 General considerations.
- 7.9002 Policies and procedures pertaining to direct acquisitions.
- 7.9003 Policies and procedures pertaining to assisted acquisitions.

PART 7

ACQUISITION PLANNING

TABLE OF CONTENTS

7.000 Scope of Part.

SUBPART 7.1 - ACQUISITION PLANS

7.102 Policy.

7.103 Agency-head responsibilities.

7.104 General procedures.

7.104-90 Integrated Acquisition Review Board ( I-ARB).

7.104-91 Advance Acquisition Planning Template

7.105 Contents of written acquisition plans.

7.107 Additional requirements for acquisitions involving bundling.

7.170 Consolidation of contract requirements.

7.170-2 Definitions.

7.170-3 Policy and procedures.

SUBPART 7.2 – PLANNING FOR THE PURCHASE OF SUPPLIES IN ECONOMIC QUANTITIES

7.202 Policy

7.203 Solicitation provision

SUBPART 7.3 - CONTRACTOR VERSUS GOVERNMENT PERFORMANCE

7.304 Procedures.

7.306 Evaluation.

SUBPART 7.90 – USE OF NON-DOD CONTRACTS

7.9001 General considerations.

7.9002 Policies and procedures pertaining to direct acquisitions.

7.9003 Policies and procedures pertaining to assisted acquisitions.

7.000 Scope of Part.

This part also prescribes policies and procedures for --

(90) Use of non-Department of Defense contract vehicles, including both assisted and direct acquisitions, for acquiring supplies or services.

SUBPART 7.1 - ACQUISITION PLANS

7.102 Policy.

(a) As stated in FAR, acquisition planning is to be performed for all acquisitions, but what is entailed, and the format it will take, will depend on the scope, dollar value, and duration of the acquisition. As stated in (90), below, written plans are required for all acquisitions with values greater than the simplified acquisition threshold (SAT).

(b) Planning to ensure that the Government meets its needs in the most effective, economical, and timely manner sometimes includes consideration of the use of contract vehicles not originally put in place by DOD personnel (e.g., Federal Supply Schedules). The considerations for use of these vehicles, as well as the procedures to be followed and safeguards to be employed when sending contracting dollars outside the Department, are set forth in Subparts 7.90, 17.5, 17.78, and 17.96, below.

(90) Written acquisition plans are required for all acquisitions expected to exceed the SAT, including those accomplished by means of direct or assisted acquisitions using non-DOD contract vehicles; see Subpart 7.90, below. This does not apply to individual orders against contracts when the acquisition plan is adequate to cover all anticipated orders. Acquisition plans shall be prepared, as applicable, in accordance with FAR 7.105, DFARS 207.105, DLAD 90.1101, and 90.1102, and be approved at a level above the buyer, as established by the Chief of the Contracting Office (CCO), except that acquisition plans shall be reviewed and approved by the CCO prior to solicitation for all actions that are not long term with a value equal to or greater than $2 million, and for all long term actions with a cumulative value equal to or greater than $10 million. (For acquisitions accomplished by means of non-DOD contract vehicles, including placement of orders against Federal Supply Schedules, this review and approval must be at a level above the buyer; see 7.90, below.) Approval prior to solicitation can be waived per supply chain guidance for urgent requirements. The format at DLAD 90.1102 may be modified to suit the needs of the contracting office. A standard DLA-wide form is not prescribed in order to permit use of supply chain forms or formats. However, as a minimum, the subject areas identified in the Advance Acquisition Planning Template (see 90.1103) shall be considered and addressed in the acquisition plan when applicable.

(i) If a DLA activity or functional unit that does not have contracting authority in its own right (e.g., HQ J-code activity; DLIS; DLA-C; DLA-E; DLA-P; DORRA) intends to acquire support through use of a non-DOD contracting vehicle on either a direct- or assisted-acquisition basis (see definitions in Part 2), that activity must contact the DLA contracting office that generally provides its contracting support, and request it to implement the appropriate review and approval procedures. Likewise, every program office that expends funds in its own right (that is, without requesting that its requirements be placed on contract by the local activity’s or supply chain’s Contracting office) must involve DLA contracting personnel in the review and approval process for the proposed acquisition. Contracting offices that exercise this function on behalf of others (e.g., DRMS on behalf of DLIS) must ensure that their supported activities are provided an explanation of this policy, and they must receive assurance from each such supported activity that the latter will no longer expend funds for contract support (including funds provided via military interdepartmental purchase request (MIPR)) without the express involvement of a DLA contracting office, at levels in accordance with the review and approval guidelines set forth in 7.104-90, Table 2. See also 7.9001(a)(90), below.

(91) Market surveys (see FAR 7.102) and market research (see FAR and DLAD Part 10) shall be performed consistent with any local operating procedures.

(92) The acquisition plan shall accompany the justification for other than full and open competition (see FAR 6.301, 6.304, and DLAD 6.304) when it is forwarded to the Activity Competition Advocate. The Activity Competition Advocate shall also be provided a copy of the acquisition plan for acquisitions where there is no history of receipt of more than one offer and price competition is not expected to be received on the acquisition.

(93) The plan shall identify anticipated costs, performance metrics, and the points of contact for monitoring contract performance.

(94) A Business Case Analysis (BCA) will be developed in accordance with the guidelines set forth in the One Book (DLAD 5025.30) chapter entitled, “Acquisition Business Case Analyses Process.” Approval thresholds for acquisition-related BCAs are addressed in DLAD 7.104-90 and Subpart 90.15; they are also referred to (for the acquisition of services) in Subpart 37.5. Although the BCA and the bundling or consolidation benefit analysis required in 7.107 and 7.170, below, are not synonymous, the kind of quantitative analysis that is at the heart of the BCA generally can be used in the determination of benefits accruing from the bundling or consolidating of contract requirements. Even when the BCA is used in this manner, though, the data pertaining specifically to bundling or consolidation should be extracted from the overall BCA and provided as a separate document in support of the justification to bundle or consolidate the requirements.

(95) See DLAD 17.9503, Acquisition Planning, for acquisition planning requirements for prime vendor, modified prime vendor, and other Tailored Logistics Support Contracting initiatives.

7.102 (96) The acquisition plan shall identify any proposed use of Time and Material (T&M) or Labor Hour (LH) clins, contracts, or task orders and address the requirements found in 90.1101, 90.1102 and 90.1103 concerning T&M and LH. Note also the monitoring and reporting requirement found in 16.601 (90).

7.103 Agency-head responsibilities.

(a) Requirements for contract actions, which must be awarded by the end of the fiscal year, must be submitted to the contracting office by 31 July of that fiscal year. Solicitations for requirements received after 31 July shall not be issued unless approved by the chief of the contracting office.

A contract action log shall be maintained by the contracting office for all purchases of contracted advisory and assistance services, periodicals, pamphlets, and audiovisual products. Existing logs may be used for this purpose, provided some means is devised to readily identify these types of contract actions that are highly vulnerable to waste.

(d) Written acquisition plans required by 7.102(91) may be effected on a system basis (see FAR 7.102) using a comprehensive plan for a specified period of time (i.e., quarterly, semi-annually or annually).

7.104 General procedures.

(a) For Defense Procurement & Acquisition Poliqy (DPAP) Peer Review Program procedures, see mandatory coverage at DLAD PGI 1.170

(b)(90) The Defense Production Act (DPA) and the Defense Planning Guidance (DPG) require DoD to maintain an adequate production base to promote national security. In this regard, industrial preparedness actions are taken to ensure that the industrial base is adequate to offset war reserves shortfalls and provide combat support in emergencies. When an item is being considered as an item of supply from a new source, an industrial capabilities assessment for the item should be accomplished or updated. This assessment is especially important when the item will be supplied by a single source, as well as when it is a critical item with a war reserve shortfall, a critical item that has experienced high demand in previous contingencies, a military unique item, or a weapon system item coded essentiality codes 1, and 5, or 7. For these types of items, adequate capacity is necessary to meet S&S requirements. Assessment of newly sourced items is not required if previous analysis on capacity to do an entire family of items (that newly sourced items belong to) shows the new source already has sufficient equipment, facilities, personnel, and materials to meet S&S requirements for the newly sourced items.

(b)(91) Measures to ensure S&S requirements (i.e., items, quantities, and delivery terms) are defined, S&S capability is developed, and S&S capability can be tested (as required in DLAD 17.9303)) must be undertaken for all new business arrangements (e.g., prime vendor, virtual prime vendor, corporate contracts, etc.) and long-term contracts. These measures are especially crucial when the new support method will eliminate or reduce DLA inventories. Acquisition plans for these new arrangements and LTCs must address S&S requirements, capability, and testing. If surge and/or sustainment requirements are not included in the solicitation (e.g., they do not exist, they are covered under other contractual arrangements, they are covered via sufficient peacetime assets, etc.), state this in the acquisition plan and explain the basis for not including them.

(c)(90) The contracting officer is responsible for taking timely actions to assure that the procurement cycle for forecasted requirements is adequate so it is not necessary to place an award or order on an undefinitized basis.

7.104-90 Integrated Acquisition Review Board (I-ARB)

(a) The I-ARB will review all proposed performance based logistics (PBL) acquisitions (see 90.1501, Appendix A for definitions), proposed service acquisitions; supply acquisitions proposed to be fulfilled through use of non-DOD contracting vehicles (see Subpart 7.90, below), and supporting BCAs, if appropriate, in accordance with the thresholds below. Additionally, all bundled requirements (see DLAD 7.107) resulting in a proposed acquisition of more than $1 million shall be approved by the I-ARB.

TABLE 1: Acquisitions of Supplies Requiring I-ARB Review (Less Supplies Acquired Via Non-DOD Contract Vehicles

$ Threshold (2) | Other Criteria | Review/Coordinate | Acquisition & BCA Approval Level
> $5M - $20M |  | Field Activity Level | Chief of the Contracting Office
> $20 - $50M |  | Field Activity Level | Head of Contracting Activity or designee (2)
> $50M |  | HQ DLA/J-72 | I-ARB
All | DLA/Military Service Partnerships | HQ DLA/J-72 | I-ARB

TABLE 2: Acquisition of Supplies Acquired Via Non-DOD Contract Vehicles (1), and of Services, Regardless of How Acquired

$ Threshold (2) | Other Criteria | Review/Coordinate | Acquisition & BCA Approval Level
> $100K - $5M |  | Field Activity Level (includes DES) | No lower than one level above contracting officer
> $5M - $20M |  | Field Activity Level (includes DES) | Chief of the Contracting Office
> $20M - $50M | DESC, DSCP, DSCC, DSCR | Field Activity Level | Head of Contracting Activity or designee (3)
> $20M - $50M | All Other Activities | HQ DLA/J-72 | Streamlined I-ARB (4)
> $50M |  | HQ DLA/J-72 | I-ARB or streamlined I-ARB
> $0.5B - $1B (5) |  | HQ DLA/J-72 | Component Acquisition Executive or designee (5)
> $0.5B (6) |  | HQ DLA/J-7/J-6 | Notification required to be provided to ASD/(NII)/DoD CIO, who reserves the right to review/approve (6)
> $1B (7) |  | HQ DLA/J-7 | Notification required to be provided to DPAP, who reserves the right to review/approve (7)

Note (1) IAW joint USD(AT&L)/PDUSD(C) memorandum, October 29, 2004, “Proper Use of Non-DOD Contracts.”

Note (2) Total planned dollar value of base period and option periods.

Note (3) Delegable to a level above the Chief of the Contracting Office.

Note (4) As specified by the SPE.

Note (5) Does not pertain to IT services.

Note (6) For acquisitions of IT services only, IAW OSD guidance contained in USD(AT&L) memorandum, October 2, 2006, “Acquisition of Services Policy”

Note (7) For acquisitions of services (non-IT only), IAW OSD guidance contained in memorandum cited in Note 6 and in USD(AT&L) memorandum, July 19, 2007, “Acquisition of Services Review and Decision Authority.” Also, for acquisition of supplies, including service/supply hybrid arrangements, via non-DOD contract vehicles, per clarification from DPAP staff (December 2006).

(b) I-ARB membership normally includes the executives/representatives identified below. The DLA Senior Procurement Executive (SPE) may determine additional members on a case-by-case basis. I-ARB decisions are considered corporate decisions. Representatives are expected to be empowered by their organizations during the I-ARB sessions. Acquisition reviews shall focus on key principles to include taking an enterprise-wide approach; assessment of established metrics and expected outcomes; and that acquisitions are established through business arrangements that are in the best interest of DLA and DoD. See DLAD 90.1501 for detailed guidance on PBL acquisitions.

Chair - SPE ( Director, Acquisition Management, J-7

Members - J-81 (Deputy Comptroller, Budget and Program Integration

Operations)*

J-6 (Deputy Director, Information Operations)*

J-31 (Executive Director, Operations and Sustainment)

J-33 (Executive Director, Materiel Process Management)

J-39 (Executive Director, Strategic Programs)

ICPs (Supply Chain HCAs, Deputy Commanders or designated representatives)

DDC (Deputy Commander or designated representative)

Advisors - DG (Office of General Counsel)

DB (Office of Small Business Programs)

* Program Budget Resource Group Co-Chairs

(c) Unless otherwise determined by the SPE, a streamlined review board, consisting of designated I-ARB members, will convene to approve services acquisitions.

(d) Milestone A Approval. An Integrated Acquisition Review Board (I-ARB) will approve the initiation into the presolicitation phase of the acquisition process. The I-ARB confirms the acquisition strategy prior to release of the solicitation and approved the abbreviated BCA. The IPT should document major aspects of both the business and acquisition strategy, and request approval to proceed. The Head of Contracting Activity (HCA) shall concur with the proposed business and acquisition strategy prior to Milestone A approval.

(1) Upon receipt of the following supporting documentation, J-72 will schedule an I-ARB meeting: formal acquisition plan, justification and approval (if applicable), contract performance management plan, source selection plan, incentive plan, abbreviated BCA, and draft solicitation. All source selection information shall be marked as “Source Selection Information-See FAR 2.101 and 3.104”.

(2) One week prior to the scheduled I-ARB, the field activity will submit an advance copy of the Milestone A approval request briefing to J-72, along with any final documentation not submitted above. The following information, at a minimum, must be addressed for Milestone A approval:

Information Required for I-ARB Milestone A Approval | Description
Acquisition overview | Summary of initiative, scope, customers, estimated value (including options)
Management approach | What level of management control will you exercise to oversee the entire acquisition process?
BCA initial findings (to include potential savings) | The BCA will be developed in accordance with J-7’s Draft One Book Chapter entitled “Acquisition Business Case Analysis”
Performance metrics, incentives/disincentives | The acquisition strategy shall explain the incentive structure, and how it incentivizes the contractor(s) to provide the contracted items to meet or exceed established goals and objectives. If more than one incentive is planned for a contract, the acquisition strategy shall explain how the incentives complement each other and ensure the incentives will not interfere with one another.
Planned contract approach | Include Plan of Action & Milestones (POA&M), evaluation strategy, and method of monitoring contract performance
Small business issues | Address any impact on small business, such as bundling or consolidation. See DLAD 7.107 and 7.170.
Surge & Sustainment requirements | See DLAD 7.104
Exit Strategy | Address transitioning of items and support if appropriate.
Challenges & issues, risks |
Accomplishments | Include results of discussions with customers

(e) Milestone B Approval. The purpose of Milestone B is to approve the final BCA and authorize proceeding to contract award, approve exercising an option or decide to terminate the process based on the recommendations presented. Prior to making the milestone decision, the I-ARB will consider the results of the analysis to include the comparison of baseline costs with the proposed cost/price, assess any risks, along with an updated exit strategy, associated with the recommended course of action, and review the results of the negotiations. All source selection information shall be marked as “Source Selection Information- See FAR 2.101 and 3.104”.

(1) Upon receipt of the following documentation, J-72 will schedule an I-ARB for contract award approval meeting: final BCA documentation, source selection decision memorandum, Technical Evaluation Report. For an option exercise Milestone B I-ARB meeting, documentation should be submitted in accordance with FAR 17.207 in addition to an updated BCA.

(2) One week prior to the scheduled I-ARB, the field activity will submit an advance copy of the Milestone B approval request briefing to J-72.

(3) The following information, at a minimum, must be addressed for Milestone B approval for awards: Background (Acquisition and BCA), changes since Milestone A approval, updated financial assessment (coordinated with J8), updated acquisition POA&M, results of negotiations, and final BCA conclusions. For Milestone B approvals to exercise options the following information must be addressed: Background (Acquisition and BCA), changes since contract award, updated acquisition POA&M, updated financial assessment (coordinated with J8), and overview of FAR 17.207 documentation.

(4) Where there is a one-year base period and one-year option periods, the responsible supply chain can request for an instant procurement (through J-72), that the SPE authorize a simultaneous Milestone B (decision to exercise the option) IARB and a Milestone C IARB. If the supply chain’s request is approved by the SPE, then upon receipt of the following supporting documentation, J-72 will schedule an IARB meeting: updated BCA, contract award to include modifications, changes since contract award, documentation to support exercising an option as described in FAR 17.207, and related contractual documents not submitted under previous milestones, updated acquisition POA&M, updated financial assessment, performance metrics, and incentive/award fee schedule/execution.

(f) Milestone C Approval. The purpose of a Milestone C review is to determine whether the Agency is getting what it is paying for in terms of contract performance and whether the customer’s requirement is being fulfilled by the terms and performance of the contract. These reviews will be conducted for those acquisitions identified in subparagraph (4) below. For those programs with multiple awards, the supply chain may request approval from the SPE (through J-72) to conduct a Regional/Program level Milestone C Review. Field activities are encouraged to nominate additional acquisitions to the Acquisition Operations Division (J-72) for Milestone C review or to conduct such reviews themselves, when appropriate. Customer participation is encouraged in all Milestone C I-ARB reviews. These reviews are not conducted in conjunction with any specific event in the course of an acquisition. Rather, the Milestone C I-ARB should be scheduled as soon as enough information and experience has been gained to determine whether a course correction is required. This will normally occur approximately one year after contract performance has begun, and should form the basis for development of a way ahead strategy for the acquisition in question. Milestone C reviews will be conducted separate and distinct from a Milestone B exercise of option review.

(1) Upon receipt of the following supporting documentation, J-72 will schedule an I-ARB meeting: updated BCA, contract award to include modifications and related contractual documents not submitted under previous milestones, updated financial assessment, performance metrics, and incentive/award fee schedule/execution.

(2) One week prior to the scheduled I-ARB, the field activity will submit an advance copy of Milestone C approval request briefing to J-72.

(3) The following information, at a minimum, will be addressed for Milestone C approval: Updated BCA findings (to include re-assessed costs and benefits based on abbreviated BCA), assessment of metrics, assessment of incentives/disincentives, and changes in acquisition since last milestone approval.

(4) The following types of acquisitions are candidates for Milestone C I-ARB review, and will be scheduled when designated by the SPE:

(i) Items monitored at the Agency Director or Senior Procurement Executive level as part of the Hi-Viz surveillance program.

(ii) Acquisitions that were the subject of Milestone A or B I-ARB review.

(iii) Acquisitions awarded as the result of A-76 competition or as follow-on acquisitions of A-76 based awards (see DLAD 90.1903(d)).

(iv) Depot level reparable awards meeting the criteria for Milestone A or B review that were not reviewed.

(g) Waiver of I-ARB review and approval requirements may be requested by the Chief of the Contracting Office, under exceptional circumstances. The request for waiver, including an Advance Acquisition Planning Template, shall be submitted to the DLA Supplier Operations Branch (J-72) and must include rationale and justification for the waiver. Waivers are granted by the SPE on a case-by-case basis.

(h) When an I-ARB review is required, the Chief of the Contracting Office (CCO) shall submit both hard and electronic copies of the following documents to J-72 for evaluation: Acquisition plans (see 90.1101) reviewed and coordinated by appropriate field functional elements; source selection plan; incentive plan; justification and approval, as applicable; the solicitation; and an abbreviated (rough order of magnitude (ROM)) business case analysis, if appropriate. An Advance Acquisition Planning Template is not required for proposed acquisitions submitted for I-ARB review (e.g., PBL and services acquisitions). Upon receipt of the documentation previously listed, J-72 will schedule an I-ARB meeting, at which the contracting activity will formally brief the acquisition. Acquisitions of information technology (IT) services valued at greater than $500 million require notification to, for potential review and approval by, the Assistant Secretary of Defense for Networks and Information Integration/Chief Information Officer (ASD(NII)/DoD CIO). Non-IT service acquisitions and supply acquisitions using non-DoD contract vehicles valued at greater than $1 billion require notification to, for potential review and approval by, the Director, Defense Procurement and Acquisition Policy. Prior documentary review of the former shall be conducted by J-7 and J-6, and of the latter by J-7. In accordance with procedures outlined in Attachment 2 of the memorandum cited in note (6), above, as well as with the delegation contained in the memorandum cited in note (7), the contracting activity shall prepare, and shall submit through J-7, the appropriate notification, including a copy of the acquisition strategy document, to the cognizant OSD office before the solicitation is issued or, for other than full and open competition, before negotiations commence. Additional requirements for specified milestone reviews for PBL acquisitions are addressed in 90.1501.

(i) The I-ARB retains the authority to review any special interest or high-risk acquisition.

(j) The I-ARB will advise the contracting activity if the proposed acquisition has unconditional approval, conditional approval, or disapproval. Unconditional and conditional approval authorizes the contracting activity to proceed with the acquisition. An interim decision will be provided at the conclusion of the formal briefing. Final I-ARB decisions will be transmitted by letter to the commander of the contracting activity.

(k) For standard competition competitive sourcing acquisitions conducted under the Office of Management and Budget Circular (OMB) A-76, a special I-ARB will convene to review the first full year of operations by the service provider in accordance with DLAD 90.1903 (d), Milestone C – Competitive Sourcing Post-Award Accountability Review, regardless of the dollar amount of the acquisition.

(l) To determine during the final year of performance in the letter of obligation whether a most efficient organization (MEO) should be re-competed or a high performing organization (HPO) competed under OMB Circular A-76, a special I-ARB will convene to review the overall performance and recommend the most advantageous course of action to the DLA Competitive Sourcing Official, in accordance with DLAD 90.1906, MEO Re-competes / Competing HPOs

7.104-91 Advance Acquisition Planning Template.

(a) An Advance Acquisition Planning Template (AAPT) (formerly the Advance Notice of Initiative for Potential APEC Review) (see 90.1103) shall be completed for all proposed acquisitions requiring review/approval at DLA HQ that meet the criteria and the dollar thresholds identified below. Templates must be electronically submitted to J-72 for review and approval once the contracting activity has sufficient information to complete the template. Excluded from this requirement are those acquisitions identified in paragraph 7.104-90. Once J-72 reviews the template, the contracting activity will be advised whether they have authority to proceed with the acquisition. All templates submitted to DLA HQ for review must be coordinated with the contracting activity's Director of Small Business and Office of Counsel and be approved by the Chief of the Contracting Office. (Orders under proposed acquisitions for which the maximum anticipated value was included in a previously submitted template with a single all-inclusive acquisition plan need not be submitted for approval separately.)

Table:

Contracting Activity | An advance acquisition planning template (see DLAD 7.104-90) is not required for acquisitions that meet the criteria for the Integrated Acquisition Review Board (IARB).
| An advance acquisition planning template is required when:
ALL | ● Any bundled acquisition* < $1 million; or ● Any consolidated acquisition**; or Regardless of estimated acquisition value of the resulting contract, any of the following: ● The program or proposed acquisition is identified by HQ DLA as high interest. ● There is known OSD, Congressional, or White House interest or a high potential to attract such interest. ● The acquisition involves strategies or processes that are expected to significantly impact the traditional supplier base or established customer practices. This includes efforts that may cause reductions in the industrial supplier base; significantly influence a market segment, supply chain, or commodity group; initiate a test or pilot program; or cause a significant increase/decrease in the DLA business volume. ● Requesting a waiver to the IARB. ● The acquisition does not require an IARB and one of the conditions specific to a contracting activity (see below) is applicable
DSCC DSCR DSCP | ● Total estimated acquisition value* > $50 million
DESC | ● Proposed natural gas acquisitions with value* > $100 million
DDC, DRMS, DNSC, DAPS, DES, DMC | ● Total estimated acquisition value* > $5 million
* includes base and all option periods. ** consolidations also require final approval by the SPE; see 7.170-3(a)(3).

(b) J-72 will advise the contracting activity within 15 calendar days after receipt of the Advance Acquisition Planning Template if the proposed acquisition is approved or disapproved, or whether an I-ARB is required. Once the proposed acquisition is approved, no significant changes shall be made without prior J-72 approval.

7.105 Contents of written acquisition plans. See 90.1101.

7.107 Additional requirements for acquisitions involving bundling.

(a) “Necessary and justified” (with regard to bundling) is a two-part determination, made with the aid of market research. It means not only that the bundle is considered essential from a management perspective, but also that the benefits accruing from the bundling of requirements, as compared to not doing so, would be measurably substantial (as defined in FAR 7.107(b)). Note that the definition of “measurably substantial” contains a requirement for quantification of benefits.

(c)(90) If quantification of the benefits of a bundled acquisition does not equal quantification levels set forth in FAR 7.107(b), ordinarily the contracting officer shall not bundle requirements. However, in exceptional situations the contracting officer may still proceed with the contracting action. The contracting officer shall seek the approval, in a determination and findings, of the Under Secretary of Defense for Acquisition, Technology and Logistics (USD(AT&L)), that bundling is necessary and justified. In that case, even though the quantified benefits do not reach the specified dollar equivalents, they must be shown to be critical to the agency’s mission success. The acquisition strategy described in the request to USD(AT&L) shall provide for maximum practicable participation by small business concerns. (See Part 19 for further guidance on maximizing small business participation.) Reduction of administrative or personnel costs alone cannot be used as justification for bundling in support of the request to USD(AT&L).

(91) For an acquisition requiring USD(AT&L)’s permission to proceed with the bundled requirement, the contracting officer shall submit the request for approval of the determination and finding to J-72; it will be routed through DIRECTOR, ACQUISITION MANAGEMENT (J-7), J-3, DLA-DB and -DG, and the Director, DLA, who will sign out the request to OSD. There are no timeframes in the statute or FAR for use of this procedure, but it is essential that justifications be submitted at the earliest possible date. Therefore, the contracting officer shall forward the request within 30 days of determining that the proposed acquisition will not generate savings in accordance with established levels, as set forth in FAR 7.107(b) (that is, within 30 days of performing a bundling analysis). The contracting officer shall not issue a bundled solicitation until the determination and finding granting the permission has been received from USD(AT&L).

(e) In establishing the procurement strategy for any bundled requirement, whether or not of a dollar value constituting substantial bundling, the contracting officer may want to address the following considerations as part of the market research required to be conducted in accordance with FAR 10.001(a)and (c) and 10.002(e): benefits; impediments to small business prime contracting participation; actions to maximize small business subcontracting participation; and affirmative determination that the benefits justify bundling. However, in cases not involving substantial bundling, FAR does not require that the documentation of the research results be so extensive as it would be for instances of substantial bundling. See 7.102(94) for the proper use of business case analyses in the documentation of benefits of bundling; see 10.001 for the extent and type of market research necessary to support the required level of documentation.

(90)(i) If a bundling analysis has already been performed on a contract action, it is not necessary to perform a new bundling analysis before exercising an option.

(ii) For new acquisitions, procurement history should be analyzed from the three immediately preceding years to determine whether there have previously been separate, smaller contracts for these requirements that were or could have been performed by small businesses.

(iii) For any contract containing an “add/delete” clause, the contracting officer shall perform a bundling analysis before adding individual/groups of items via clause exercise, if the change modifies the contract and constitutes a new requirement. On the other hand, if the add/delete clause is merely a mechanism by which items, always intended to be part of the acquisition and included in the initial analysis, are “phased in” (for pricing and other purposes), then the additions do not constitute a new requirement, and a new bundling analysis is not required.

(91) The SBA can appeal to the head of a contracting agency certain decisions made by the agency that SBA believes will adversely affect small businesses. One such appealable decision pertains to any bundling of contract requirements the SBA considers to be unnecessary or insufficiently justified. Whenever a proposed aggregation of requirements, at least some of which were formerly filled by small businesses, is likely to render the resultant contract unsuitable for award to a small business concern, the SBA may challenge that solicitation. (See the definition of bundling at FAR 2.101 for aspects of a procurement that might make small business participation unlikely.) Given the seriousness of these consequences, the contracting officer must be able to show that any such proposed bundle is “necessary and justified” (as defined in 7.107(a), above), and that benefits that are anticipated to accrue to the Government will be “measurably substantial,” as explained in FAR 7.107(b). Reduction of administrative or personnel costs are not considered sufficient justification for bundling, unless these savings are expected to be substantial. If the contracting officer cannot determine that a bundling of requirements is necessary and justified, and that its benefits will be measurably substantial (including situations where the contracting officer cannot quantify such benefits), the contracting officer shall not proceed with the bundling without approval by USD(AT&L).

(92) In cases where there is disagreement between the SBA and the contracting officer over a bundled or substantially bundled requirement, the PCR or SBA Area Office may initiate an appeal to the head of the contracting activity. Levels of appeal and associated timeframes are provided in FAR 19.402(c)(2) and (for general reference) 19.505.

7.170 Consolidation of contract requirements.

7.170-2 Definitions.

(90) (i) As used in DFARS 207.170-2 to describe the aggregation of two or more requirements into a solicitation to obtain offers for a single contract or a multiple award contract, the term “previously provided” refers to the current or most recent awards for the requirements’ fulfillment, rather than to a “look back” for an indefinite number of years or for their entire acquisition history. Any aggregation of requirements into a single solicitation valued over $5.5 million that meets the consolidation definition in DFARS 207.170-2 is considered a consolidation within the meaning of this section, whether or not the previous contracts were provided by small businesses. (Despite the lack of a specific reference to small business, though, the legislation that this coverage implements was intended to enhance the participation of small business entities. See Part 19 for a complete treatment of small business issues.)

(ii) If requirements are currently being solicited under a single solicitation that will result in multiple contracts not subject to FAR 16.5, and the immediately preceding contracts for the same requirements were also awarded under multiple contracts resulting from a single solicitation not subject to FAR 16.5, then these requirements are not consolidations. However, the inclusion or exclusion of the words, “all or none,” in a solicitation for requirements that would otherwise be considered a consolidation does not have a bearing on whether or not the solicitation is, in fact, consolidated. If, at the time of acquisition planning, currently separate requirements are aggregated into a single solicitation with the possibility of their being awarded as a single or multiple award in accordance with the definition at DFARS 207.170-2, the acquisition is considered a consolidation, whether or not a different award determination is made upon receipt of offers.

(91) As with bundling, “substantial” benefits of consolidation are those that are essential, ample, and not illusory. They should, but (unlike bundling) need not absolutely, be quantified.

7.170-3 Policy and procedures.

(a)(1) See 10.001(a)(2)(iv) for a discussion of market research as it pertains to the consolidation of contract requirements.

(a)(3) The determination by the senior procurement executive that a consolidation is necessary and justified will not be delegated.

(a)(3)(i) Although benefits of consolidation may include non-quantifiable, as well as quantifiable, components, any benefits analysis should involve quantification to the maximum extent possible, in order to demonstrate substantiality of the benefits claimed. The DOD Benefit Analysis Guidebook, located at http://www.acq.osd.mil/sadbu/news/contractconsolidation.pdf, which can be accessed from the DLA Regulatory Homepage, may be useful in this regard, since, as a practical matter, the consolidation benefits analysis ought to follow the same guidelines, and result in the same kinds of benefits identified, as for bundling. As a rule of thumb, versus a hard-and-fast requirement, a showing of “substantial benefit” should be approximately 10% of the contract value, including quantifiable and non-quantifiable benefits (which is the amount specified for substantial savings for acquisitions valued up to $75M in the bundling legislation and coverage).

(ii) See 7.102(94) for the proper use of BCAs in the documentation of benefits of consolidation.

SUBPART 7.2 –PLANNING FOR THE PURCHASE OF SUPPLIES IN ECONOMIC QUANTITIES

7.202 Policy.

(b) For solicitations for IDCs and other long-term contracts covering voluminous items for which response by the offeror to the clause at FAR 52.207-4 is not practicable, see 7.203(90).

7.203 Solicitation provision.

(90) The FAR provision shall be tailored, or a locally developed clause used, to obtain volume discounts, market basket discounts and/or separate prices at the offeror’s price break quantities, across the range of potential order quantities, under IDC and other long-term contracts where response to the standard FAR provision is impracticable.

SUBPART 7.3 - CONTRACTOR VERSUS GOVERNMENT PERFORMANCE

7.304 Procedures.

(c)(1) Where the Executive Director, Acquisition Management, (J-7) is the HCA (see 2.101), solicitations in which a comparison will be made between contractor and Government performance in accordance with OMB Circular A-76 shall be forwarded to HQ DLA, ATTN: J-71 for review and approval prior to release (see 1.690-6(b)(3)).

(90) Procedures for SBA requested 8(a) commitments.

When, due to application of the confidentiality requirements of FAR 7.304(d), it is not possible to obtain an in-house cost estimate independent of the Government's sealed in-house offer for use in determining an estimated current fair market price (FMP), the contracting officer may determine the FMP based on cost or price analysis in accordance with the provisions in FAR 19.805 and 19.806, as appropriate. When agreement is reached with the SBA or its subcontractor on the terms and conditions of the proposed contract, the Government's sealed in-house estimate shall be opened and the cost comparison completed in accordance with FAR 7.306(b). When agreement between SBA or its subcontractor as to the terms and conditions of the proposed contract is not reached and the SBA withdraws its certification, the Government's sealed in-house estimate shall not be opened. A competitive solicitation shall subsequently be issued, either on a set-aside or non-set-aside basis in accordance with FAR 7.306. The 8(a) firm(s) for which the SBA commitment was originally required shall be provided an opportunity to offer on the competitively issued solicitation. The procedures of FAR 7.306(a) or (b), as appropriate, apply to the balance of the cost comparison process.

(91) With respect to requests for information related to commercial activities cost studies, the contracting officer (or other authorized individual) must consider the guidelines contained in DLAR 5400.14, DLA Freedom of Information Act Program, paragraph VIII.E., and promptly determine if such information should be withheld or released. Requests shall not be required to be submitted under the Freedom of Information Act (FOIA) in order to be considered. If the information is to be withheld, the requestor shall be notified immediately of the decision to withhold the information and of the right to submit a written request for the information under FOIA, if the request was not submitted under FOIA initially. Requests for information may be an indication that the solicitation contains defects or ambiguities, or that the CA solicitation process would be improved by dissemination of the information to all prospective offerors. Therefore, as a part of the disposition of each request, the contracting officer shall consider the need to issue an amendment to the solicitation.

7.306 Evaluation.

(a) Sealed bidding.

(3) The contract file must be forwarded to HQ DLA, ATTN: J-73, for review and approval, and the PLFA must be advised by J-73 that the file is approved before the PLFA commander signs the decision summary form (DLA Form 1764, Cost Comparison Analysis In-House versus Contract Performance, or DLA Form 1764a, Cost Comparison Analysis Expansions, New Requirements, and Conversion to In-House). The contracting officer shall not sign the decision summary form until J-73 approval of the contract file has been received or until J-73 comments, that are a condition of approval, have been properly addressed.

SUBPART 7.90 – USE OF NON-DOD CONTRACTS

7.9001 General considerations.

(a) The use of non-DOD contracts by DLA personnel, via either direct or assisted acquisitions (see definitions at 2.101), to procure supplies and services is often an effective way to accomplish acquisitions in support of the Agency mission. Because of this, the use of these vehicles, including but not limited to the Federal Supply Schedules awarded by the General Services Administration or the multiple award contracts put in place by the Department of the Interior, Department of the Treasury, or any other federal activity, is encouraged when it is determined to be the best method of procurement to meet DLA requirements. However, acquisition planning must be done for all buys valued at amounts greater than the simplified acquisition threshold to determine whether using such a vehicle is actually the best method for satisfying the requirement. Market research and the early involvement of financial management and requirements personnel are essential steps in the process. Contracting personnel must take care to ensure that non-DOD contracts are not used to circumvent conditions and limitations imposed by DOD Authorization Acts and other legislation on the use of funds; to ignore other Defense-specific programs and policies; or to compensate for poor or non-existent acquisition planning.

(90) In order to make use of non-DOD contracts on either a direct or assisted acquisition basis, any activity or functional unit that does not have a contracting office or contracting personnel must contact the DLA activity or supply chain that customarily provides its contract support, so that the review and approval requirements of Subpart 7.1 and of this Subpart may be fulfilled. It is no longer permissible for any DLA activity or program office to expend funds for acquiring goods or services (including funds provided via MIPR to another DOD or a non-DOD activity) without the involvement of DLA contracting personnel; specifically, this means the involvement of a warranted contracting officer for all acquisitions valued greater than the simplified acquisition threshold.

(b) Any acquisition of services via a non-DOD multiple-award contract vehicle must be consistent with the requirements of Section 803 of the National Defense Authorization Act for Fiscal Year 2002, Competition Requirements for Purchase of Services Pursuant to Multiple Award Contracts (implemented in DFARS 208.405-70 and 216.505-70). This section is concerned with the “fair opportunity to compete” and “fair notice of intent” requirements and exceptions pertaining to multiple-award contracts (MACs). The rule “follows the money:” civilian agencies that receive DOD funds to obtain services for DOD must comply with DFARS 208.405-70, Additional ordering procedures for services, and 216.505-70, Orders for services under multiple-award contracts. However, there is a distinction made between GSA FSS and all other non-DOD MACs. For the former, the contracting officer is required to contact as many schedule holders as practicable to ensure that at least three responses are received. For the latter, all contractors offering under the MAC must be given a fair notice of intent to make the purchase, and all must be afforded an opportunity to make an offer and have it fairly considered. See DLAD 8.405-70(c)(1) and DFARS 208.405-70, DFARS 216.505-70, and DLAD 37.105, Competition in service contracting, for further information.

(c) Nothing in this subpart is intended to affect the applicability of FAR Section 8.002, Priorities for Use of Government Supply Sources; FAR 8.405-6, Sole Source Justification and Approval (for orders against FSS); FAR Subpart 17.5, Interagency Acquisitions under the Economy Act; or DOD Instruction 4000.19, Interservice and Intragovernmental Support.

(d) Financial management personnel are responsible for ensuring:

(1) That the individual preparing the documentation required in 7.9002(b) and 7.9003(b) certifies that all applicable DLA review and approval policies have been followed.

(2) That funds are available and appropriate for the procurement action.

7.9002 Policies and procedures pertaining to direct acquisitions.

(a) All direct acquisitions of supplies or services shall comply with Integrated Acquisition Review Board (I-ARB) procedures, as set forth in 7.104-90(a), Table 2 (above). Direct acquisitions of services shall also comply with the review and approval requirements of Subpart 37.5. A DLA warranted contracting officer shall review or, preferably, execute the direct acquisition of either supplies or services for every transaction valued over $100,000.

(b) For all direct acquisition orders for supplies or services placed against non-DOD contracts (including GSA Federal Supply Schedule (FSS) orders), and for each Blanket Purchase Agreement issued against a GSA FSS, the buyer, contracting officer, ordering officer or other authorized DLA official maintaining the contract file shall document that:

(1) The order is in the best interests of DLA. Consider such factors as satisfying customer requirements; cost effectiveness (taking into account discounts and fees) and price; delivery schedule; non-availability of a suitable contract within DOD; contract administration/oversight; small business opportunities; and any other factors, as applicable.

(2) Supplies or services to be provided are within the scope of the (non-DOD) contract.

(3) Funding is available and appropriate for the acquisition. (The documentation shall reflect that the financial management organization validated that funds are appropriate for the acquisition; see 7.9001(d)(2), above.

(4) Any terms, conditions and/or requirements unique to DOD or DLA are incorporated into the order to comply with applicable statutes, regulations and directives (e.g., the requirement that the items listed in DFARS 225.7002-1, pertaining to restrictions on food, clothing, fabrics, specialty metals, and hand or measuring tools, and that are procured with DOD funds, be of domestic origin).

(5) (i) All procedures contained in this subpart, and in 7.104-90, 17.5, 17.78, and 37.5, as applicable, have been followed. Also, although PGI 17.9602 and 17.9605 contain procedures that specifically support DLAD Subpart 17.96, which pertains to non-Economy Act assisted acquisitions, certain of those procedures also have applicability to direct acquisitions. Accordingly, these PGI sections also need to be addressed for each direct acquisition from a non-DOD agency.

(ii) A signed certification to this effect shall be included in the file; see 7.9001(d)(1), above.

7.9003 Policies and procedures pertaining to assisted acquisitions.

(a) All assisted acquisitions of supplies or services shall comply with Integrated Acquisition Review Board (I-ARB) procedures, as set forth in 7.104-90(a), Table 2 (above). Assisted acquisitions of services shall also comply with the review and approval requirements of Subpart 37.5. An assisted acquisition of either supplies or services specifically requires review by a DLA warranted contracting officer for every transaction valued over the simplified acquisition threshold.

(b) For all assisted acquisitions of supplies or services placed against non-DOD contracts (including GSA Federal Supply Schedule (FSS) orders), the buyer, contracting officer, ordering officer or other authorized DLA official maintaining the contract file shall document that:

(1) The use of a non-DOD contract is in the best interests of DLA. Consider such factors as satisfying customer requirements; cost effectiveness (taking into account discounts and fees) and price; delivery schedule; non-availability of a suitable contract within DOD; contract administration/oversight; small business opportunities; and any other factors, as applicable.

(2) Supplies or services to be provided are within the scope of the (non-DOD) contract to be used. Coordinate with the non-DOD contracting officer to verify the requirement is within the scope of the assisting agency’s selected contract.

(3) The funding appropriation is legal and proper for the acquisition and used in accordance with any appropriation limitations. (The documentation shall reflect that the financial management organization validated that funds are appropriate for the acquisition; see 7.9001(d)(2), above, and 17.9604.

(4) Any terms, conditions and/or requirements unique to DOD or DLA are incorporated into the order or contract to comply with applicable statutes, regulations and directives (e.g., the requirement that the items listed in DFARS 225.7002-1, pertaining to restrictions on food, clothing, fabrics, specialty metals, and hand or measuring tools, and that are procured with DOD funds, be of domestic origin).

(5) All procedures contained in this subpart, and in 7.104-90, 17.5, 17.78, 17.96, and 37.5, and DLAD PGI 17.96, as applicable, have been followed. A signed certification to this effect shall be included in the file; see 7.9001(d)(1), above.

(6)(A) For interagency acquisitions subject to the Economy Act (31 U.S.C. 1535), comply with the determination and findings (D&F) requirements at FAR 17.503, and provide the D&F, signed by a senior executive or Flag or General Officer, to the servicing activity (i.e., the non-DOD activity whose contract is being or shall be used) in accordance with FAR 17.504 and DFARS 217.504.

(B) Assisted acquisitions by GSA are generally authorized by other statutes, such as the Federal Property and Administrative Services Act or the Clinger-Cohen Act, and are therefore not subject to the Economy Act; no D&F is required to be prepared. To the extent other non-DOD contracts are authorized under other statutes (e.g., GWACS authorized under 40 U.S.C.11302(e); use of Franchise Fund activities authorized by various public laws (see 31 U.S.C. 501 note); and similar specific statutory authorities), the Economy Act does not apply, and D&Fs are not required to be prepared. For complete treatment of these non-Economy Act transactions, see Subpart 17.96.

(7) Departmental policy, as set forth in the October 29, 2004 memorandum, Proper Use of Non-DOD Contracts, jointly signed by USD(AT&L) and the Principal Deputy Under Secretary of Defense (Comptroller), reflects the requirements of Section 854 of the National Defense Authorization Act for Fiscal Year 2005. Among other things, that section requires data to be collected and reported on the use of assisted acquisitions throughout the Department of Defense, specifically with reference to service charges imposed on these purchases by the assisting (non-DOD) activity. The Federal Procurement Data System – Next Generation (FPDS-NG) will eventually provide the automated reporting capability to fulfill this requirement. Until DLA is a full participant in the FPDS-NG system, each contracting activity shall locally maintain a list of all assisted acquisitions placed on their behalf, with the service charge identified for each. This list shall be submitted to J-71 on a fiscal-year basis no later than October 31st each year.