# DLAD PART 2 – DEFINITIONS OF WORDS AND TERMS

- SUBPART 2.1 – DEFINITIONS

- 2.101 Definitions.

PART 2 – DEFINITIONS OF WORDS AND TERMS

TABLE OF CONTENTS

SUBPART 2.1 – DEFINITIONS

2.101 Definitions.

SUBPART 2.1 – DEFINITIONS

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2.101 Definitions.

“Assisted acquisition” means a contract awarded or task or delivery order placed on behalf of DLA, in an amount over the simplified acquisition threshold and with the use of DLA or DOD funds, by an official of the United States employed by other than a Department of Defense activity. This definition includes situations in which DLA or DOD funds are provided to an acquisition activity which then obligates its own funds on the contract or order.

“Commercial item” – See 12.102(90) regarding determinations of commerciality.

“Component Acquisition Executive” (CAE) means the Director, DLA Acquisition (J7), pursuant to Delegation of Acquisition and Acquisition Management Authority memorandum dated January 29, 2007. The CAE is responsible for all acquisition matters within DLA.

"Contracting activity." The Director, DLA Acquisition (J7) shall exercise the functions, not otherwise delegated, of head of the contracting activity for any DLA contracting office not designated as a "contracting activity" pursuant to DFARS 202.1. Actions required by the FAR, DFARS, this directive, or other directives involving the functions of the head of the contracting activity not otherwise delegated shall be referred to DLA HQ, Attention: J71.

"Contracting Offices not designated as a Contracting Activity."

DLA Distribution.

DLA Disposition Services.

DLA Installation Support.

DLA Document Services.

Defense Media Activity.

DLA Strategic Materials.

“Chief of the Contracting Office” (CCO) as used in this directive, means for the:

Detailed List of “Chief of the Contracting Offices”
Aviation supply chain, including all detachments regardless of geographic location: | Director, Procurement Process Support Directorate, DLA Aviation
Land and Maritime supply chains, including all detachments regardless of geographic location: | Director, Procurement Process Support Directorate, DLA Land and Maritime
Troop support and Construction and Equipment supply chains (includes Medical, Subsistence, C&T, DLA Troop Support Europe, DLA Troop Support Pacific; and C&E): | Director, Procurement Process Support Directorate, DLA Troop Support
DLA Energy: | Director of Acquisition Policy and Oversight
DLA Disposition Services: | Director, Acquisition Management
DLA Strategic Materials: | Director, Contracts and Marketing
DLA Contracting Services Office, (DCSO): | Director, Contracting Services Office
DLA Document Services: | Chief of Contracting.
DLA Distribution: | Chief of Contracting
Defense Media Activity: | Director, Acquisition & Procurement Division
Depot Level Repairable Ogden, DLA Aviation: | Director, Depot Level Repairable Procurement Operations
Depot Level Repairable Oklahoma City, DLA Aviation: | Director, Depot Level Repairable Procurement Operations
Depot Level Repairable Philadelphia, DLA Aviation: | Director, Depot Level Repairable Procurement Operations
Depot Level Repairable Warner Robbins, DLA Aviation: | Director, Depot Level Repairable Procurement Operations
Depot Level Repairable Huntsville, DLA Aviation: | Director, Depot Level Repairable Procurement Operations
Depot Level Repairable Mechanicsburg, DLA Aviation: | Director, Depot Level Repairable Procurement Operations
Depot Level Repairable Warren, DLA Land and Maritime: | Director, Depot Level Repairable Procurement Operations
Depot Level Repairable Aberdeen, DLA Land and Maritime: | Director, Depot Level Repairable Procurement Operations
Depot Level Repairable Albany, DLA Land and Maritime: | Director, Depot Level Repairable Procurement Operations

"Defense Supply Center" (DSC) as used in this directive means DLA Land and Maritime, DLA Aviation, and DLA Troop Support unless otherwise stated in individual paragraphs.

Direct acquisition” means a task or delivery order placed by a DLA buyer, contracting officer, ordering officer, or other authorized DLA official, in an amount over the simplified acquisition threshold and with the use of DLA or DOD funds, against a contract vehicle established outside the Department of Defense.

“Economy Act order.” Specific statutory authority is required for a DOD activity to place an order with a non-DOD Agency for goods or services, and to pay the associated cost. If a more specific statutory authority does not exist, the default is the Economy Act, 31 U.S.C. 1535. The FAR states that the Economy Act may also be used as the authority for the placement of orders “between major organizational units within an agency.” Within the Department of Defense, this means that a military service or Defense agency may use the Economy Act to acquire goods or services from or through another DOD component when other, more specific statutory authority is unavailable. Guidance for use of the Economy Act as the authority for interagency acquisitions can be found in FAR Subpart 17.5, DFARS Subpart 217.5, Subpart 17.5 of this guidance (the DLA Acquisition Directive), and volume 11A, Chapter 3 of the DOD Financial Management Regulations, DoD 7000.14-R. Guidance for use in intradepartmental acquisitions can be found in volume 11A, Chapter 3 of the DoD Financial Management Regulation and DoDI 4000.19, Interservice and Intra-governmental Support.

“Head of agency” or “agency head” means the Director, DLA Acquisition (J7) pursuant to Delegation of Authority memorandum dated January 27, 2007.

“Inventory Control Point” (ICP) as used in this directive means DLA Land and Maritime, DLA Energy, DLA Aviation, and DLA Troop Support, unless otherwise stated in individual paragraphs.

“Interagency Acquisition.” This is an acquisition in which a DOD activity (requesting DOD agency/customer) needing goods or services obtains them from or with the assistance of a non-DOD agency (assisting/servicing agency/performer). For example, a DLA purchase from the General Services Administration’s Federal Supply Schedules is considered an interagency acquisition. See Subpart 7.90.

”Non-Economy Act order.” This is an order, entered into under specific statutory authority, by a DOD component with a non-DOD Agency for the provision of goods or services that will be executed by a non-DOD Agency contracting activity (assisted acquisitions). Some of these specific statutory authorities are the Acquisition Services Fund, through which purchases are authorized to be made from the General Services Administration (GSA)(see 41 U.S.C. 251 et seq. and 40 U.S.C. 501); Franchise Fund authority (first established by P.L. 103-356, Title IV, section 403; see 31 U.S.C. 501 note), by which other Federal agencies may enlist the support of the Departments of the Treasury or Interior, among others; and Project Order authority, derived from 41 U.S.C. 23, which permits use of depot-level maintenance and repair (organic manufacturing) facilities by the DOD components. Considerations for use of any non-Economy Act authority for interagency acquisitions can be found in Subpart 17.96.

“Non-severable services.” This is a service contract whose benefit to the requiring activity only occurs at the end of the contractual period, because performance cannot easily be broken down into discrete undertakings. Non-severable work and services must be delivered whole or to completion in order for the requiring activity to realize any benefit from contract performance. For example, no benefit would be realized from a contract with a 12-month term for construction of a bridge that is terminated after 6 months, because the structure completed to that point would be unable to fulfill the original requirement for which the bridge was intended. A more pertinent example for DLA is a contract for performance of a study and preparation of a report. Even though performance proceeds throughout the contract term, the value of the study would not be realized before the research was completed and the results analyzed, since the contract could not readily be separated into individual tasks, and its purpose is to produce the report.

"Senior Procurement Executive" means the Director, DLA Acquisition (J7). The SPE also serves as the agency’s Component Acquisition Executive (CAE) pursuant to Delegation of Authority memorandum dated January 27, 2007.

“Severable services.” An agreement consisting of independent undertakings, expressed in a single instrument, is a severable services contract. It is capable of being divided, or “disassociated,” into legally distinct rights or obligations as a contract. A severable service is one that provides full value every day; that is, benefit is received by the requiring activity throughout the period while materials, work, or services are being performed. Even if the services are stopped prior to the originally planned end of the contract’s term, the requiring activity would still have received benefit. For example, contracts for the provision of daily secretarial and administrative support, or for weekly trash removal, are severable: if either contract was for a period of a year, but was terminated after 6 months, 6 months of benefit would have accrued to the receiving activity.

“Simplified acquisition threshold:” The Contracting Officer is delegated the authority to make the determination that the acquisitions are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack. This determination should be placed in the contract file.

“Solicitations” includes “request for quotations” or “request for proposals” (see FAR Parts 13 and 15).

“Unified Procurement/Defense Working Capital Fund authority.” The Economy Act does not apply to intra-DOD procurements where items have been specifically assigned to DLA under the unified procurement system for DOD agencies (see DOD 4140.1-R and 4140.26-M). DLA has separate, specific statutory authority, 10 U.S.C. 2208, for acquisitions and sales of assigned items. Since DLA sales of items subject to DLA integrated materiel management are made pursuant to this statute, they are not subject to the Economy Act (see FAR 17.500(b)). The unified system is implemented in FAR section 8.002, pertaining to required sources of supply, and in DFARS Subpart 208.70, Coordinated Acquisition.