# DLAD PART 7 – ACQUISITION PLANNING

- 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 Acquisition strategy review panel (ASRP) and integrated acquisition review board (IARB).
- 7.104-91 Advance acquisition planning template (AAPT).
- 7.105-90 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.

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 ( IARB).

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

(Revised March 22, 2012 through PROCLTR 2012-31)

For Defense Procurement and Acquisition policy (DPAP) peer review program procedures, see PGI 1.170. For Defense Logistics Agency (DLA) peer review procedures, see PGI 1.170-90.

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 (b)(S-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.

(S-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 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., DLA 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. 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., DLA Disposition Services 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. See also 7.9001(a)(90), below.

(S-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.

(S-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.

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

(S-94) A business case analysis (BCA) will be developed in accordance with the guidelines set forth in DLAD Issuance 5025.30 entitled, “Acquisition Business Case Analyses Process.” Approval thresholds for acquisition-related BCAs are addressed in 7.104-90 and subpart 90.15; they are also referred to in Subpart 37.5 for the acquisition of services. 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.

(S-95) See 17.9503, Acquisition Planning, for acquisition planning requirements for prime vendor, modified prime vendor, and other tailored logistics support contracting initiatives.

(S-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.

(1) 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 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 and Acquisition Policy (DPAP) peer review program procedures, see mandatory coverage at 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 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 Acquisition strategy review panel (ASRP) and integrated acquisition review board (IARB).

(a) The ASRP and the IARB focus on key principles in taking an enterprise-wide approach, assessing metrics with expected outcomes, and establishing an acquisition to produce a business arrangement that is in the best interests of both the Defense Logistics Agency (DLA) and the Department of Defense (DoD). The ASRP and IARB will convene at DLA Headquarters (HQ) to review proposed acquisitions according to the criteria and thresholds in paragraph (c), Table 1 below. The Senior Procurement Executive (SPE) or designee may direct an ASRP or IARB review of any acquisition, such as a special interest or high-risk procurement, to include any acquisition with Congressional, policy, audit, legal and/or bundling issues, as well as any acquisition with significant findings from a Procurement Management Review.

(b) The following definitions apply to Table 1 in paragraph (c):

(1) Supplies include, but are not limited to, material, equipment, hardware, components, assemblies, sets, kits, and accessories, as well as replenishment spare parts and annual supply buys, managed by or under the procurement authority of DLA. Supplies include commercial items and commodities such as fuels. Non-DoD supplies include General Services Administration (GSA) Federal Supply Schedules (FSS) items.

(2) Performance-based logistics (PBL) acquisitions may include long term contracts (LTC), prime vendor (PV) contracts, tailored logistics support (TLS) contracts, and corporate contracts (see 17.95, 90.15 and Appendix A).

(3) Service acquisitions include, but are not limited, to those involved in construction, architect-engineering (A-E), information technology (IT), management and professional support, studies, analyses and evaluations, engineering and technical services, other advisory and assistance services, as well as research and development (R&D), but may exclude supply acquisitions with an incidental service component (such as delivery, distribution of inventory and/or warranty maintenance). Service acquisitions include commercial items under Federal Acquisition Regulation (FAR) Part 12 and utility privatization efforts under FAR Part 41.

(c) Review and Approval Thresholds.

TABLE 1:

Review and Approval Thresholds for Performance Based Logistics (PBL),

Tailored Logistics Support (TLS),Prime Vendor (PV) Acquisitions; Services Acquisitions; and/or

non-PBL/TLS/PV Supply Acquisitions

(when using other DoD or Non-DoD Contract Vehicles, refer to DLAD subpart 17.5);

IT Services Acquisitions (note 1);

All Supply Acquisitions (meeting criteria in notes 2 and 11)

$ Threshold (notes 3, 4) | Activity or Site Applicability/Other Criteria | Review / Coordinate | Acquisition and Business Case Analysis (BCA) Approval (note 5)
$150K - $5M | All DLA activities, including Depot Level Repairable (DLR) sites (note 7), for PBL, TLS, or PV acquisitions; services acquisitions; and/or non-PBL/TLS/PV supplies (when using other DoD or non-DoD contract vehicles) | Field Activity Level | Contracting officer (notes 4, 6) (except that Chief of the Contracting Office will randomly sample 25% of CENTCOM AOR support actions for compliance)
>$5M - < $20M | All DLA activities, including DLR sites, for PBL, TLS, or PV acquisitions; services acquisitions; and/or non-PBL/TLS/PV supplies (when using other DoD or non-DoD contract vehicles) | Field Activity Level | Chief of the Contracting Office (CCO) (notes 4, 6)
$20M – $50M | Field activities, to include DLR sites, with Acquisition Executives (AEs) (notes 4 and 8), for PBL, TLS, or PV acquisitions; services acquisitions; and/or non-PBL/TLS/PV supplies (when using other DoD or non-DoD contract vehicles) | Field Activity Level | AE
> $50M – $100M | Field activities, to include DLR sites, with AEs (notes 4 and 8), for PBL, TLS, or PV acquisitions; services acquisitions; and/or non-PBL/TLS/PV supplies (when using other DoD or non-DoD contract vehicles) | Field Activity Level / Acquisition Review Board (ARB) (note 9) | AE
$20M – $100M | All other DLA activities (note 10) for PBL, TLS, or PV acquisitions; services acquisitions; and/or non-PBL/TLS/PV supplies (when using other DoD or non-DoD contract vehicles) | DLA HQ ASRP and IARB | SPE or designee, DLA HQ Acquisition (J7)
> $100M –< $1B | All DLA activities, including field activities with DLR sites for PBL, TLS, or PV acquisitions; services acquisitions; and/or non-PBL/TLS/PV supplies (when using other DoD or non-DoD contract vehicles) | DLA HQ ASRP and IARB | SPE or designee, DLA HQ J7
> $500M – < $1B | All DLA activities, including field activities with DLR sites, for information technology (IT) services acquisitions | DLA HQ ASRP and IARB | SPE or designee, DLA HQ J7 (note 1)
$1B and above | All DLA activities, including field activities with DLR sites, for acquisitions of all supplies and/or services | DLA HQ ASRP and IARB | SPE or designee, DLA HQ J7 (notes 1, 2)
All | New DLA Partnership with a Military Service or organization for PBL, TLS, or PV acquisitions; services and/or supplies (using other DoD or non-DoD contract vehicles) (note 11) | DLA HQ ASRP and IARB | SPE or designee, DLA HQ J7 (if >$500M for IT or $1B and above, see above two categories in this table and notes 1, 2)
All | A-76 competition (note 12) | DLA HQ ASRP and IARB | SPE or designee, DLA HQ J7 (if >$500M for IT or $1B and above, see above two categories in this table and notes 1, 2)

Note 1. In accordance with DODI 5000.02 Operation of the Defense Acquisition System, dated 8 December 2008, Enclosure 9, paragraph 5, for acquisitions of IT only valued at over $500 million, the Assistant Secretary of Defense for Networks and Information Integration, Chief Information Officer (ASD(NII)/CIO) retains decision authority for IT services acquisitions valued at over $500 million. DLA HQ Acquisition Operations Division (J72), in conjunction with DLA HQ Information Operations, J6, will notify the ASD(NII)/CIO. These acquisitions are subject to a special ASRP and IARB; see PGI 7.104-90, paragraph (g).

Note 2. All acquisitions valued at $1 billion and above shall be presented to Defense Procurement and Acquisition Policy (DPAP) for peer review; refer to 1.170 and DFARS 201.170. DLA HQ J72 will inform the DLA HQ peer review manager, who, in turn, will notify the Director, DPAP, of acquisitions meeting the criteria for DPAP peer review.

Also refer to DODI 5000.02 Operation of the Defense Acquisition System, dated December 8, 2008, Enclosure 9, Paragraph 5 and USD(AT&L) memorandum, dated February 18, 2009, Subject: Review Criteria for the Acquisition of Services; the USD(AT&L) retains decision authority for any services acquisition valued at over $1 billion. These acquisitions are subject to a special ASRP and IARB; see PGI 7.104-90, paragraph (g).

Note 3. The threshold equals the total planned dollar value for an acquisition, i.e., the maximum value of the procurement with the base period and option periods with surge requirements. (See FAR 1.108(c) and DLAD 1.108(c)).

Note 4. DLR sites assigned to a DLA supply chain, either DLA Aviation or DLA Land and Maritime, are DLA activities; each DLR CCO, however, has varied procurement authority during a transition period. A special ASRP and IARB will be held for a DLR site’s acquisition; see PGI 7.104-90, paragraph (g).

Joint policy on field activities with DLR sites concerning procurement authority is detailed in two memoranda, both dated April 30, 2008, Subject: “As is, Where is” Transition Period, and Subject: Joint DLR Policy for Approval Exceeding the CCO Level. These memoranda and other detailed guidance on DLR sites are contained in Appendix J of the DLAD.

Note 5. A BCA will be prepared, when applicable, in accordance with DLA Instruction (DLAI) 2101 Acquisition Business Case Analysis. Field activities with DLR sites may submit their Service’s analysis of alternatives (AoA) or equivalent document.

Note 6. In accordance with 1.601-90(b)(3) and 1.601-91(b)(3), review and approval of contracting actions shall be performed by DAWIA certified 1102s or 1101s in the contracting career path; an acquisition can only be executed within the limits of the contracting officer’s warrant.

Note 7. Field activities designated as DLR sites include those sites under DLA Aviation and DLA Land and Maritime, i.e., DLA Aberdeen, DLA Albany, DLA Huntsville, DLA Mechanicsburg, DLA Ogden, DLA Oklahoma City, DLA Philadelphia, DLA Warner Robins, and DLA Warren.

Note 8. Field activities with AEs include DLA Aviation, DLA Energy, DLA Land and Maritime, and DLA Troop Support.

Note 9. The AE, who is the Head of the Contracting Activity (HCA), must conduct an acquisition review board for all acquisitions over $50 million. Refer to J7 Memorandum, dated November 2, 2009, Subject: Delegation to Approve Consolidation of Contract Requirements (Defense Logistics Acquisition Directive (DLAD) 7.170) and Authority to Approve Acquisitions below $100 million as outlined in 7.104-90(a).

Note 10. All other DLA activities include DLA Disposition Services, DLA Distribution, DLA Installation Support, DLA Logistics Information Service, DLA Document Services, DLA Strategic Materials, DLA Contracting Services Office, and, for acquisition oversight and HCA authority only, the Defense Media Activity.

Note 11. All acquisitions will be reviewed at all dollar amounts for these acquisitions involving partnerships, to include transfers of National Stock Numbers (NSNs). DLA has partnerships with the Army, Air Force, and Navy, including the Marines, for executing acquisitions. These partnerships are procurement arrangements between a Military Service and DLA, e.g., to provide support at a defined service level. DLA may also have a similar partnership with another DoD organization, e.g., the National Defense University, or a civilian Federal Agency, e.g., the Veterans Administration.

Note 12. An A-76 competition shall be subject to a special ASRP and IARB; see PGI 7.104-90, paragraph (g).

(d) Conduct of ASRP and IARBs with milestones.

(1) Unless otherwise determined by the SPE, an ASRP and IARB will convene to review acquisitions in accordance with the criteria and thresholds listed in 7.104-90(c), Table 1. When applicable, an ASRP will first be conducted, then an IARB will be conducted for each milestone, A, B and C.

(2) Acquisition milestones focus on critical decision points, where A precedes the solicitation phase, B precedes award or an option, and C includes post-award reviews. (DLA HQ’s IARB milestones parallel those in DoD Instruction (DODI) number 5000.02, dated December 8, 2008, Subject: Operation of the Defense Acquisition System.)

(3) ASRP and IARB milestone reviews may include DPAP Peer Review in accordance with DLAD 1.170; when a DPAP Peer Review is required, then ASRP and IARB procedures may be tailored by the DLA HQ J72 as specified in PGI 7.104-90, paragraph (g). Milestones A, B, and C are further described and detailed in paragraphs (g) through (i) below.

(4) Detailed procedures for conducting the ASRP and IARB with membership representation and documentation requirements are within DLAD PGI 7.104-90.

7.104-91 Advance acquisition planning template (AAPT).

(a) An AAPT shall be completed and submitted to DLA HQ J72 by field activities without an Acquisition Executive (AE) for all proposed acquisitions that meet the criteria and the dollar thresholds identified in paragraph (d), Table 1 below. (Refer to PGI 7.104-91 for the AAPT template.) An AAPT is not required for and is not applicable to acquisitions that meet the criteria for the ASRP and IARB. (Refer to 7.104-90.)

(b) The acquisition plan may be submitted instead of an AAPT, at the option of the field activity’s Chief of the Contracting Office (CCO).

(c) Field activities with AEs, which currently include DLA Aviation, DLA Energy, DLA Land and Maritime, and DLA Troop Support, are not required to submit an AAPT; however, each AE must establish and maintain adequate and appropriate internal controls for oversight and review of acquisitions meeting the criteria in paragraph (d).

(d) Table 1. AAPT or Acquisition Plan Requirement for Review and Approval at DLA HQ.

Contracting Activity | Criteria and dollar threshold
All field activities without an AE, to include DLA Contracting Services Office, DLA Disposition Services, DLA Distribution, DLA Document Services, DLA Installation Support, DLA Logistics Information Service, Defense Media Activity, and DLA Strategic Materials | • Any bundled acquisition. • Any consolidated acquisition. • Tailored Logistics Support (TLS) contracts, regardless of dollar value, up to the IARB review threshold. (See 7.104-90 and 17.9502(d).) • Any acquisition, where the program or proposed acquisition is identified by DLA HQ as high interest, i.e., those acquisitions reported as “Hi-Viz”. (Refer to 1.690-2(b).) • Any acquisition where there is known DoD, Congressional, or White House interest or a high potential to attract interest. • Any acquisition or its predecessor has had significant findings as the result of a procurement management review (PMR) within the past two (2) years. • The acquisition involves strategies or processes that are expected to significantly impact the traditional supplier base or established customer practices, to include efforts that may cause reductions in the industrial supplier base, significant influence of a market segment, supply chain, or commodity group, initiation of a test or pilot program, or causing a significant increase/decrease in the DLA business volume. • Any acquisition, valued at $5 million or higher (to include the base period, all option periods, and surge requirements), for supplies and/or services, up to the ASRP and IARB review threshold. (Note: The field activity CCO may request a waiver of submission and review and approval of the AAPT or acquisition plan from the DLA HQ J72 for routine procurements of supplies and/or services; the request must be in writing with rationale and sufficient detail to form a decision.)

(e) Refer to PGI 7.104-91, advance acquisition planning template (AAPT) for detailed guidance on the AAPT submission.

7.105-90 Contents of written acquisition plans.

In accordance with FAR 7.105, contracting officers, program managers, planning specialists, or other officials responsible for the program or requirement will identify potential vulnerabilities when developing acquisition strategies/plans and when conducting post award and contract administration functions and will develop mitigation strategies. Contracting personnel shall specifically consider and identify vulnerabilities that create opportunities for fraud, address them in mitigation plans as part of acquisition planning, and include them in lessons learned. These vulnerabilities should be addressed during the development of the acquisition strategy and in written acquisition plans for procurements above the simplified acquisition threshold. Heads of Contracting Activities (HCAs) will establish a process to collect issues relating to [pre-award and] contract administration activities and share lessons learned with the acquisition community. HCAs will ensure that the lessons learned and any corrective actions are considered by the contracting team when beginning future acquisition planning. See 90.1101 for guidance on content.

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 J72; it will be routed through Director, DLA Acquisition (J7), J3, DLA-Small Business Programs and DLA General Counsel, 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 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 $6 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 Senior Procurement Executive (SPE) has authorized the field activity’s Acquisition Executive (AE) to execute a determination that a consolidation is necessary and justified for a procurement valued at up to $100 million. That authority will not be further delegated.

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 Director, DLA Acquisition (J7) 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 DLA HQ, attention: J71 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 DLA HQ, attention: J73, for review and approval, and the PLFA must be advised by J73 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 J73 approval of the contract file has been received or until J73 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 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 are subject to the review levels specified in DLAD 7.104-90. Direct acquisitions of services shall also comply with the documentation, review and approval requirements of DLAD 37.590. A DLA contracting officer shall review and execute, within the limits of his/her warrant, the direct acquisition of supplies and/or services for every acquisition with a total value 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 contain procedures that specifically support 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 are subject to the review levels specified in 7.104-90. Assisted acquisitions of services shall also comply with the documentation, review and approval requirements of 37.590. An assisted acquisition of supplies or services requires review by a DLA warranted contracting officer for every transaction with a total value over $100,000.

(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 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. 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 J71 on a fiscal-year basis no later than October 31st each year.