# DLAD PART 39

- 39.000 Scope.
- 39.101 Policy.
- 39.106 Year 2000 compliance (Y2K).

- SUBPART 39.2 – ELECTRONIC AND INFORMATION TECHNOLOGY (E & IT)

- 39.201 Scope of Subpart.
- 39.204 Exceptions.

- SUBPART 39.90 – PROCEDURES, APPROVALS AND TOOLS

- 39.9000 Scope.
- 39.9001 Procedures for IT Procurement.
- 39.9002 Documentation Requirements for IT Procurement.
- 39.9003 IT Miscellaneous Portal and Tools.

PART 39

ACQUISITION OF INFORMATION TECHNOLOGY

TABLE OF CONTENTS

39.000 Scope
39.(90) Procedures for IT procurement

39.(91) Document requirements for IT procurement

39.(92) Telecommunications equipment and services

39.101 Policy

39.106 Year 2000 Compliance

39.201 Scope

PART 39

ACQUISITION OF INFORMATION TECHNOLOGY

39.000 Scope.

This subpart prescribes interim policies and procedures for the acquisition of Information Technology (IT) and Telecommunications.

39 (90) Procedures for IT procurement.

(a) Contracts for IT may be awarded by DLA contracting offices other than DES-O under the following conditions:

1. The total value of the contract (including options) does not exceed $500,000;

2. The contract will occur by placing an order not exceeding $500,000 against a GSA schedule contract;

3. The contract will occur by placing a delivery order against an applicable HQ DLA or joint service indefinite quantity or requirements contract (as authorized by the contract), except for items for the mid-tier. Mid-tier refers to those machines that fall in the range between the work station and the mainframe. Examples of their uses include, but are not limited to, client servers, network controllers, process controllers, and dedicated single application processors. All mid-tier requirements must be submitted to DSDC-TB for technical coordination with the appropriate DSDC offices prior to submission to DES-OC. DES-OC will acquire the initial maintenance requirements in support of mid-tier requirements. However, all follow-on maintenance in support of mid-tier equipment may be acquired by the contracting office supporting the DLA activity; or

4. The contract is for IT supplies, training, or subscriptions (excluding software operating or application systems).

(b) Acquisitions in excess of the established thresholds shall be submitted to the Chief Information Officer Customer Support (CIC) office to: review the package for compliance with current DLA technical initiatives and policies; coordinate the package with the appropriate business office; and forward the package to DES-OC for procurement.

(c) All requests for use of the Defense Information Systems Agency (DISA) Defense Enterprise Integration Services (DEIS II) contracts shall be submitted to CIC, unless otherwise authorized in writing by the DLA Chief Information Officer (CIO). Use of other multi agency and government-wide agency contracts (GWACs) for IT supplies or IT support services shall be processed through CIC, unless otherwise authorized by the DLA CIO.

(d ) Prior to acquiring IT supplies or IT support services from a multi agency contract, the requesting activity shall comply with FAR Subpart 17.5, Interagency Acquisitions Under the Economy Act (EA). If an EA determination is required, it shall be submitted to CIC with the request to use a multi agency contract. Prior to approving the use of a multi agency contract, CIC shall submit the EA determination to DES-O for review and action.

(e) All requirements to be acquired under the GSA Federal Systems Integration and Management (FEDSIM) Program shall be staffed through CIC for informational purposes and investment accountability by the CIO.

(f) Refer to section 4.1302(c) when acquiring personal identity verification products and services.

39 (91) Documentation requirements for IT procurement.

(a) The following documentation will be forwarded to the contracting office to be included in the contract file.

1. Documentation for acquisitions valued below $100,000 shall be in accordance with local procedures, or as appropriate for the complexity of the requirement.

2. Documentation for acquisitions valued between $100,000 and $500,000 require a modified justification. The following information shall be provided in a justification for an acquisition in this dollar range.

(i) A paragraph or less describing why the IT is needed and the program/project/ Automated Information System (AIS) being supported by the IT.

(ii) A description of what is being acquired, such as hardware or software, etc. Identify the product, model number, version number, quantity, unit cost and any other attributes such as essential physical characteristics. For support services include a Statement of Work.

(iii) Delivery information: Must include the exact location and point of contact with commercial and DSN telephone numbers. Example:

Defense Logistics Agency (DLA)

8725 John Kingman Road

Pod B. Room 1246

Fort Belvoir, VA 22060

POC: Jane Doe, Commercial (703)767-1234, DSN 427-1234

(iv) Sources: Attach a copy of the market survey for each recommended source.

(v) Funding Document.

(vi) For sole source (only one source, specific make or model or compatibility-limited) attach appropriate Justification for Other than Full and Open Competition.

(vii) Other: Any miscellaneous information.

(b) Documentation in the form of a Requirements Analysis (RA) and an Analysis of Alternatives (AA) shall be prepared and submitted to the contracting office for inclusion in the contract file for acquisitions exceeding $500,000.

1. A Requirements Analysis is a prerequisite to the acquisition of IT, which provides the basis for an AA for meeting the stated requirements, and it should be commensurate with the dollar value and complexity of the procurement. A Requirements Analysis should address the following elements in support of the requirement: information needs, system life, description of requirements, compatibility-limited requirements, justification of specific make and model (if applicable), security requirements, accessibility requirements for individuals with disabilities, space and environmental requirements, workload and related requirements, and record management requirements.

2. An Analysis of Alternatives is conducted after the completion of the RA and compares and evaluates various alternatives for meeting the requirements and to determine which alternative is the most advantageous to the Government. The AA should be commensurate with dollar value and complexity of the results from the RA. The AA should consider the following: the results of the market research, use of GSA's IT programs, IT available for reuse, use of existing IT on a shared basis, cost for each alternative, conversion costs, benefits (quantifiable/nonquantifiable), and obsolescence.

(c) Acquisitions valued between $500,000 and $1,000,000 shall be supported by an RA and an AA that demonstrates that the benefits of the acquisition exceed the cost.

(d) Acquisitions in excess of $1,000,000 shall be supported by an RA and an AA. The AA must calculate the total estimated costs using net present value for each of the possible alternatives.

39 (92) Telecommunications equipment and services.

(a) Telecommunications equipment and services meet the definition of information technology.

(b) Contracts for telecommunications equipment and services may be awarded by DLA contracting offices other than DES-O under the following conditions:

1. The contract will occur by placing an order not exceeding $500,000 utilizing the GSA Purchase of Telecommunications & Services (POTS) type contracts.

2. The total value of the procurement (including options) does not exceed $500,000.

(c) Acquisitions for telecommunications equipment and services in excess of the thresholds in (b) above shall be submitted to CIC who will: review the package for compliance with current DLA technical initiatives and policies; coordinate the package with the appropriate business office; and forward the package to DES-OC for procurement.

(d) Communication Services Authorities (CSAs) shall only be signed by contracting officers.

39.101 Policy.

To the greatest extent possible, acquisitions for IT and Telecommunications should be treated as any other acquisition and unique requirements should be kept to a minimum.

39.106 Year 2000 compliance (Y2K).

(a) (90) All solicitations and contracts for non-IT items (non-IT items are those items that contain embedded microcircuit chips with a clock mechanism, timing device, or control device) that are required to perform date/time processing involving dates subsequent to December 31, 1999, shall require the deliverables to be Year 2000 compliant or be upgraded to Y2K compliant.

(91) Orders for IT shall not be placed against a contract or other acquisition instrument unless the contract instrument requires Y2K compliance or the order itself requires Y2K compliance.

(92) The contracting officer must insert the clause 52.239-9000, Y2K Compliance Notice, in all solicitations and contracts for items, including items acquired under Part 12, containing embedded microchips with a clock mechanism, timing device, or control device required to perform date/time processing involving dates subsequent to December 31, 1999, to describe the Y2K compliance requirement.

(93) Exception or waiver requests to Y2K compliance must be approved by the DoD Chief Information Officer (DoD CIO). All requests for exception or waiver shall be submitted to the DLA CIO for review and approval prior to submission to the DoD CIO. The exception or waiver request must be supported with a written commitment from the contractor to provide the Y2K enhancement by a specific date in the future, no later than December 31, 1999.

(94) Contracting officers should consider requiring testing for Y2K compliance based on the complexity of the IT requirement. Testing procedures should allow for a representative sampling of the IT delivered to be tested for Y2K compliance and the results should be documented in writing, either by the supplier or the acquiring activity.

SUBPART 39.2 – ELECTRONIC AND INFORMATION TECHNOLOGY (E & IT)

39.201 Scope of Subpart.

(a) Assuring purchases are Section 508 compliant requires two-way communication with the requirements community prior to the contracting action. The specific responsibilities of each organization are detailed in the Standard Operating Procedures for Section 508. However, the Exhibits contained in this link are examples of how the Federal Aviation Administration operates and should not be considered absolute requirements for DLA contracting officers.

(b) General Service Administration (GSA) requires all contracts and purchase requests for E&IT, regardless of cost, to include Section 508 requirements as well as the 508 technical standards for each category of E&IT products and services being obtained. However, note that the GSA IT-70 solicitation contains Section 508 requirements. See PGI 39.9003 for information on GSA.

(c) Further information on Section 508 is available via the internet and on the intranet in eWorkplace under J-644.

39.204 Exceptions.

Consult with the local Office of Counsel when seeking an exception to having the acquisition of E&IT supplies and/or services meet the applicable accessibility standards at 36 CFR Part 1194, E&IT Accessibility Standards.

SUBPART 39.90 – PROCEDURES, APPROVALS AND TOOLS

39.9000 Scope.

This subpart prescribes policies and procedures for the acquisition of Information Technology (IT) and telecommunications.

39.9001 Procedures for IT Procurement.

(a) All mid-tier requirements must be coordinated with J-6 and other business offices as needed, e.g., J-8 prior to submission to the contracting office. Mid-tier refers to equipment that is in the range between individual work stations and mainframe computers (examples of mid-tier uses include: client servers, network controllers, process controllers, and dedicated single application processors).

(b) Non-DLA Contracting Services Office (DCSO) may award contracts or orders for IT if any of the following conditions applies:

(1) The total value of the contract or order (including options) does not exceed $500,000.

(2) The contract or order is for IT supplies, training, or subscriptions.

(c) Requirements with a value exceeding the threshold of $500,000 shall be procured by DCSO, unless approval of the DCSO Chief of the Contracting Office (CCO) is obtained. Non-DCSO contracting offices shall request this procurement authority in writing to the DCSO CCO who will determine whether the procurement action will be performed by the non-DCSO contracting office or DCSO based on the facts presented.

(d) Proposed use of the Defense Information Systems Agency Defense Enterprise Integration Services contracts shall be submitted to the DLA CIO, through the DCSO, unless otherwise authorized in writing by the DLA CIO.

(e) All requirements to be acquired using the GSA Federal Systems Integration and Management Program shall be staffed through the DCSO to the DLA CIO for informational purposes and investment accountability by the DLA CIO. See 7.90 for additional information.

(f) Refer to section 4.1302 when acquiring personal identity verification products and services.

(g) Prior to acquiring commercial software or software maintenance the contracting officer shall review DFARS Subpart 208.74, the DLA One Book Chapter, Smartbuy and Enterprise Software Initiative (ESI) Enterprise Service Agreements (ESA), which is accessible through eWorkplace, and the DLA Information Technology Solutions Document. Requests for waiver in accordance with DFARS PGI 208.7403 shall be submitted to J-654 (see DLA One Book Chapter, Smartbuy and Enterprise Software Initiative (ESI) Enterprise Service Agreements (ESA), 4.6.3.2). See PGI 39.9003 for additional information.

(h) Any requirements that require the contractor to develop, store, process, display or transmit information that is used in any DLA business process must be coordinated with J-6 in the acquisition planning stage.

(i) Consult the DLA Informaton Technology Solutions Document to ensure that there are no existing IT solutions that can meet the acquisition requirement. See PGI 39.9003 for additional information on this document.

(1) Though this document provides Agency IT solutions, the contracting officer must ensure that all necessary procurement requirements are followed when using sources listed therein. Some areas to consider include the competitive process (see FAR 6.1), sole source and limited source justifications (see FAR 8.405-6), brand name situations (see FAR 11.105), economies of scale and scope of the listed source(s). See PGI 39.9003 for additional information.

(2) Contact J-6 to request the addition of a new solution to the document.

(j) For telecommunications equipment and services:

(1) The contracting officer shall ensure that, for capital investment requirements $250,000 or greater, capital investment funding shall be used.

(2) Communication Services Authorities or other communications services orders or agreements shall be signed by the contracting officer.

39.9002 Documentation Requirements for IT Procurement.

(a) The requiring activity shall provide the following documentation to the contracting office to be included in the contract file:

(1) A statement clearly describing why the IT is needed and the program/project/Automated Information System being supported by the IT procurement;

(2) A description of what is being acquired. Identify the product (including its intended purpose, if that is not clear from the name of the product), manufacturer and model number, version number, quantity, unit cost and any other attributes such as essential physical characteristics. For support services include a Statement of Work;

(3) Include the exact location and point of contact with commercial and DSN telephone numbers. Example:

Defense Logistics Agency (DLA)

8725 John Kingman Road

Pod B. Room 1246

Fort Belvoir, VA 22060

POC: Jane Doe, Comm (703)767-1234 or DSN 427-1234;

(4) A copy of the market survey for each recommended source (see FAR Part 10);

(5) A copy of the funding documentation;

(6) For sole source (e.g., only one source, specific make or model, or compatibility-limited) provide the contracting office documentation that can be used to support a justification for other than full and open competition or limited source justification (see FAR 6.3 and 8.405-6), and brand name situations (see FAR 11.105). See PGI 39.9003 for additional information;and

(7) Attach a copy of any miscellaneous information and/or supportive documentation necessary.

(b) Additional documentation and/or Business Case Analysis (BCA) shall also be prepared as part of the contract file for an acquisition as needed.

(1) Acquisitions valued below $50,000 shall be submitted in accordance with local procedures, or as appropriate for the complexity of the requirement.

(2) For acquisitions greater than or equal to $50,000 and less than $250,000 outline and compare the status quo method of business with three alternatives.

(3) For acquisitions greater than or equal to $250,000 and less than $1,000,000, in addition to the requirements of (b)(2) above, provide a detailed comparison of the expected costs, benefits, impacts and risks that would result from implementing alternative IT investments.

(4) For acquisitions greater than or equal to $1,000,000 and/or having a significant impact on DOD logistics operations, in addition to the requirements of (b)(2) and (b)(3) above, the analysis must be more indepth. The analysis requires a study of the impact on DLA as a whole, as well as the quantitative and qualitative ramifications of the alternatives described within the investment. It considers the broad implications of the implementation of each alternative, including local and global implications, as well as immediate and future costs and savings.

(5) Refer to the DLA One Book, Acquisition Business Case Analysis Process, for guidance on acquisition BCAs. Note explanation of exemptions provided at paragraph 2.1.1.

39.9003 IT Miscellaneous Portal and Tools.

See PGI 39.9003, Procedures, Approvals, and Tools, for a portal to IT laws, regulations, policy and procedures. In addition, various IT tools are located there.